Mumbai Indians trade Hardik: How do trades work in IPL?

What’s in today’s article?

• Why in news?
• Trading in IPL
• What are the types of trade one IPL franchise can do?
• How does the one-way trade of players work?
• Can teams release players and retain players?
• From where does a team source the money to buy a player who has been traded to them?

Why in news?

• Recently, Hardik Pandya, the famous Indian cricketer, was traded from Gujarat Titans to Mumbai Indian.
• Both Gujarat Titans are Mumbai Indian are the franchise teams of the Indian Premier League (IPL).
  • The IPL is a men's Twenty 20 cricket league founded in 2007 by the Board of Control for Cricket in India (BCCI) and Lalit Modi.
  • The IPL is held annually in India between March and May. The league is contested by ten city-based franchise teams.
  • The IPL's headquarters are in Mumbai.

Trading in IPL

• In the IPL, teams can trade players during the trade window before the auction.
• The trade window is a crucial time for teams to improve their squads.

What are the types of trade one IPL franchise can do?

• There are two types of trade: One way trade and Two-way trade.
• A one-way trade is when a franchise buys one or more players from another IPL team.
  • The example of a one-way trade is of all-rounder and Gujarat Titans captain Hardik Pandya moving to Mumbai Indians.
• In a two-way trade in which teams swap players.
  • The example of a two-way trade is the one where we saw Rajasthan Royals swapping their top-order batsman Devdutt Padikkal with Lucknow Super Giants pacer Avesh Khan.
• Player consent is required for both a one-way trade and a two-way trade.

How does the one-way trade of players work?

• Working
  • If a player is getting an offer from another IPL team, then he can inform his existing team that he is interested in being traded.
  • The decision to sell a player of theirs can come from a franchise too after taking consent from the cricketer.
  • In both situations, a transfer fee is discussed between the player and his current IPL team.
    • E.g., when Hardik Pandya moved from Gujarat Titans to Mumbai Indians, a transfer fee would have been decided by the player and Gujarat Titans.
• Players right on transfer fee
  • The BCCI has no cap on transfer fees.
  • Players have a right to ask for a percentage of the transfer fees from the team he is moving out from. This will be a one-time payment.
    • The team to which the player is moving, pays the transfer fee to the team which is releasing the player.
  • Once a transfer agreement is signed, it is sent to the BCCI.

Can teams release players and retain players?

• Teams can release players and they will be part of the auction pool. They can also retain players.
• For example, Kolkata Knight Riders have retained all-rounders Andre Russell and Sunil Narine.
• At the same time, KKR have released players like Bangladesh skipper Shakib Al Hasan, India all-rounder Shardul Thakur, and New Zealand fast bowler Tim Southee.

From where does a team source the money to buy a player who has been traded to them?

• Source of Money
  • IPL teams earn money from a variety of sources, including:
    • Media rights, Prize money, Ticket sales, Merchandise sales, Brand sponsorships, Player auctions, Player endorsements, Central sponsors, Shirt sponsors, Partnerships.
  • The BCCI also distributes a large portion of money to the franchises each year.
  • IPL teams use this money to pay for players, coaches, and other expenses.
  • Each team had a purse of Rs 95 crores for last year’s mega auction. This year is a mini-auction, with an increase of Rs 5 crore to the overall budget.
    • Hence, the 2024 IPL auction will give each team a budget of Rs. 100 crore.
• Example of Mumbai Indians
  • Mumbai Indians spent Rs 94.5 crores last year. So, they had only Rs 5.50 crore in their kitty for the upcoming auction.
  • However, MI have released fast bowler Jofra Archer and all-rounder Cameron Green among others.
  • Hence, they will have money in hand to get Hardik on board and bolster the squad in the auction.

Q1) What is Indian Premier League (IPL)?

The Indian Premier League (IPL) is a men's Twenty20 (T20) cricket league. The Board of Control for Cricket in India (BCCI) and Lalit Modi founded the league in 2007. The competition is usually held in summer between March and May every year.

Q2) What is Board of Control for Cricket in India (BCCI)?

The Board of Control for Cricket in India (BCCI) is the national governing body for cricket in India. It was established in 1928 by a group of players at the Roshnara Club in Delhi. The BCCI's headquarters are located at the cricket center in Churchgate, Mumbai.

Source: Hardik Pandya’s return to Mumbai Indians explained: Is there a transfer fee involved? How do trades work in IPL? | ESPNcricinfo