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

How does the one-way trade of players work?

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. For example, when Hardik Pandya moved from Gujarat Titans to Mumbai Indians, a transfer fee would have been decided by the player and Gujarat Titans.

Does a player earn from the transfer fees?

Yes. A player can earn a certain percentage from the transfer fees. The BCCI has no cap on transfer fees. Players have a right to ask for a percentage of the transfer fees. For example, if a player’s transfer fee is Rs 30 crore, the player can ask for 20 percent or six crores from the team he is moving out from. This will be a one-time payment. Once a transfer agreement is signed, it is sent to the BCCI. The team to which the player is moving, pays the transfer fee to the team which is releasing the player. So far Hardik’s transfer fee has not been disclosed.

Can teams release players and retain players?

Yes, 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. Rajasthan Royals have released England’s Test cricket batting star Joe Root, who opted out from IPL 2024.

Who pays a player who moves from one team to another?

For example in Hardik’s case, Mumbai Indians will have to pay his Rs 15 crore annual fees, the same amount which Gujarat Titans had paid for his services before the mega auction.

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

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. Mumbai Indians spent Rs 94.5 crores last year. So they had only Rs 5.50 crore in their kitty for the upcoming auction. But since MI have released fast bowler Jofra Archer and all-rounder Cameron Green among others, they will have money in hand to get Hardik on board and bolster the squad in the auction.