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Mega Auctions: Still the Future of IPL & WPL?

Indian franchise cricket has seen an extraordinary rise in brand value and size over the past decade. IPL teams that were once valued at a few hundred million dollars are now being priced at levels comparable to major global sports franchises. RCB’s owners reportedly seek a valuation close to $2 billion, showing how powerful these brands have grown since the league began. The league’s overall valuation has also surged, with multiple teams now comfortably crossing the $1 billion mark.

The WPL, despite being only two seasons old, continues to gain momentum. Franchise values grew sharply after the inaugural season, and the league is already on track to expand from five teams to six by 2026/27. Investors are showing increasing interest, signalling strong confidence in the women’s game’s long-term commercial potential. The Indian women team’s recent World Cup triumph has electrified public sentiment and lifted the sport’s visibility to new heights.

Team Identity Is Being Rebuilt Too Often

Despite rising franchise values, frequent changes are disrupting team identity. Franchises dismantle their squads every few years. They lose hard-earned cohesion before it matures. Frequent changes weaken fan connections. Constant resets disrupt the franchise cricket system, which thrives on continuity.

A. Successful Teams Are Entering Auctions With Handicaps

Analysts have observed a clear pattern across recent mega auctions. Teams releasing most players are entering with significantly larger purses. Teams protecting their core are entering with major financial restrictions. These rules tilt competitive balance unintentionally. In the 2025 IPL mega auction, Punjab Kings and RCB entered with the highest budgets. Teams executed bold rebuilding strategies. Teams assembled strong squads. Both teams reached the final while more stable sides faced unavoidable handicaps.

A similar imbalance has surfaced in the WPL. UP Warriorz and Gujarat Giants entered the recent mega auction with ample budgets. They quickly built powerful line-ups. Meanwhile, successful teams holding established stars had limited flexibility. They could not release key players easily due to brand value risks. Their auction room was therefore reduced sharply. The system penalizes consistent planning and rewards volatility.

B. Retention Deductions Are Becoming Too Punitive

Retention rules aim to provide stability. The intention behind the rule is understood. These rules protect competitive balance. However, the current structure penalizes franchises that invest in long-term squad building.

Under the current slabs, teams that retain all players spend a significant portion of their purse. In the IPL, almost 66% of the total budget is consumed instantly when full retention is used. Only 34% of the purse is then carried into the mega auction. In the WPL, the situation remains similar. Retaining all players locks nearly 62% of the WPL budget. Teams have less than 38% of the purse left for meaningful bidding.

Because of this sharp deduction, mega auctions force successful teams into unavoidable financial constraints. Their rivals, who release most players, are entering with far more flexibility. A system designed to ensure fairness now creates imbalance. Loyalty is being punished. Instability is being rewarded. The current system erodes long-term planning at its foundation.

Long-Term Growth depends on Rewarding Youth Development Pipelines

One of the least-discussed weaknesses in the current franchise ecosystem is the lack of incentive for long-term youth scouting. Teams such as Mumbai Indians and Kolkata Knight Riders have historically invested heavily in identifying and grooming young domestic talent. However, the mega auction system erodes the benefits of this investment. Franchises often lose players they discovered and trained every three years because the auction structure makes retention unaffordable.

The unintended consequence is clear:
The system fails to reward franchises that scout effectively. Franchises with larger auction purses are benefiting disproportionately. Rivals aggressively target players nurtured by MI or KKR, knowing these teams identified proven talent early. Opportunistic bidding wars now make it almost impossible for scouting-focused franchises to retain their players.

This dynamic reduces long-term investment in youth development. Why spend years tracking and grooming promising talent if the rules do not allow you to retain them meaningfully? Over time, this undermines the sustainability of the league’s talent ecosystem. Franchises strengthen India’s cricketing future when they actively discover and shape young players, rather than letting auction volatility dictate careers.

Time to Reinvent the Auction Ecosystem

No doubt, some rules are working well. Flexible retention slabs, like the WPL example of Delhi Capitals retaining four players at equal salaries, are helpful. However, further reforms are needed to restore balance and reward long-term planning.

  • Reduce retention deductions: Cap the maximum purse impact to ~40–45% to prevent top teams from entering auctions at a disadvantage.
  • Enable limited pre-auction youth signings: Permit teams to retain 1–2 uncapped players outside the auction, protecting talent they have scouted and developed.
  • Introduce a structured U‑19 draft: After the main auction, uncapped or U‑19 players who went unsold become eligible for the draft. Teams pick in reverse order of the previous season’s standings, similar to the SA20 system.

Both IPL and WPL stand at a pivotal moment. Franchise valuations are soaring, fan engagement is at record highs. The player acquisition system must reflect these opportunities. The time to act is now. Mega auctions may continue, but the league must balance them with mechanisms that reward planning, loyalty, and talent development. Otherwise, short-term excitement erodes long-term value.

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