BCCI Prepares Blueprint For Mega Auction, Two New IPL Franchises & Media Rights Auction: Reports

BCCI has prepared the blueprint for the IPL auction. The blueprint includes details of the two new franchises, retention of players, and mega auction.

BCCI has prepared the blueprint for the 2022 edition of the Indian Premier League (IPL), which will witness further expansion of the cash-rich cricket league. It includes details of the two new franchises to be introduced, retention of players, mega auction, and new tender for media rights.

The cricket board has finally made up its mind to include two new franchises in the league. As per reports, the bidding process will begin in mid-August, and bids for mandatory scrutiny will be open in mid-October.

According to the media reports, Kolkata's RP-Sanjiv Goenka Group, Adani Group, Ahmedabad, Aurobindo Pharma Limited, Hyderabad, and Gujarat's Torrent Group are showing interest. Similarly, some other corporate entities and private equity and investment advisory firms might also get involved in the bids.

Budget To Increase From Rs. 85 Crores To Rs. 90 Crores

BCCI is set to increase the salary budget from Rs. 85 crore to Rs. 90 crore. This means that another Rs. 50 crore will be added to the total salary pool (among 10 franchises). The franchises will have to spend 75% of the allocated amount. The budget will increase from Rs. 90 crore to Rs. 95 crore in the next three years and to Rs. 100 crore before the 2024 season.
 
Player Retention

Each franchise will be allowed to retain four players, but with certain conditions. Franchises can either retain three Indians and one foreign player, or two Indians and two foreign players.

The salary purse of the franchise that retains three players is deducted as follows as of now: As per the existing rules, Rs. 15 crores, Rs. 11 crores, and Rs. 7 crores are deducted if three players are retained, and Rs. 12.5 crore and Rs. 8.5 crore for retaining two players, and Rs. 12.5 crore for retaining only one player.

If the BCCI now allows franchisees to retain a maximum of four players with an increase of Rs. 5 crores, then there may be a slight change in it.

Media Rights Auction

BCCI is also planning to auction major media rights at the end of this year. The board and the industry expect a minimum 25% hike in the value of media rights going forward. OTT space has seen a huge growth in comparison to TV broadcasting due to the pandemic and this factor may play a key role in the media rights auctions in the coming months.