IPL salary debate: Are cricketers underpaid or bound by structure?

Citing estimates that franchises earn ₹400-500 crore annually, Mukund suggested that the current spending of around ₹100-120 crore on player salaries is disproportionately low.

A fresh debate around the economics of the Indian Premier League (IPL) has been sparked by former India opener Abhinav Mukund, who has argued that players in the world’s richest T20 league are "grossly underpaid" and that the salary cap should be doubled to ₹200–250 crore per franchise.

 

Mukund’s comments, made on The Great Indian Cricket Show on Doordarshan, come at a time when the IPL continues to grow in valuation and global stature, even as player salaries remain regulated under a strict cap system.

 

Recently, Royal Challengers Bengaluru (RCB) was bought by Aditya Birla Group and Times of India Group-led consortium for $1.78 billion, while Rajasthan Royals (RR) was sold to US-based entrepreneur Kal Somani for $1.63 billion.

 

 

For the 2026 season, each franchise has a purse of ₹125 crore — a figure that has steadily increased over the years but remains central to the league’s competitive balance. 

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Mukund’s argument: Valuation vs player pay

 

Mukund’s core argument rests on the disparity between the IPL’s valuation and player earnings. He pointed out that if the IPL is among the top four or five sporting leagues globally, its players should be compensated at similar levels.

 

Citing estimates that franchises earn ₹400–500 crore annually, Mukund, who represented RCB and CSK in world's richest cricket league, suggested that the current spending of around ₹100–120 crore on player salaries is disproportionately low. His proposal to raise the cap to ₹200–250 crore effectively calls for a near doubling of player expenditure.

 

He also highlighted that the highest-paid cricketers often rely on endorsements rather than league contracts for income, indicating that IPL salaries alone may not reflect a player’s market value. 

 

 

 

 

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  A closer look: Are IPL players really underpaid?

 

While Mukund’s argument is compelling at a surface level, a deeper analysis suggests the issue is more complex.

 

The IPL operates on a salary-capped auction model, designed not just to reward players but also to ensure parity among franchises. Unlike open-market leagues, where clubs can spend freely, the IPL’s structure prevents wealthier teams from monopolising talent.

 

This model inherently limits top-end salaries but strengthens the league’s competitive balance — a key factor behind its sustained popularity.

 

Moreover, player compensation cannot be viewed in isolation from revenue-sharing mechanisms. IPL players collectively receive roughly 18 per cent of league revenues, significantly lower than global benchmarks such as the English Premier League (EPL), where players receive close to 70 per cent. This disparity lends some weight to Mukund’s claim that players may not be getting a proportional share of the league’s financial success. 

 

IPL vs global leagues: A flawed comparison?

 

Mukund compared IPL salaries with those in global leagues like baseball and Formula 1, but such comparisons require caution.

 

The IPL is a short-duration tournament, lasting about two months, whereas leagues like the EPL or NFL span several months, often close to a year. This fundamental difference reshapes how salaries should be interpreted.

 

• Per-match or per-week earnings: IPL players, especially top-tier ones, earn exceptionally high amounts for a short window. On a per-match or per-week basis, they can rival or even exceed many global athletes.
• Annual earnings: However, when viewed annually, elite footballers — such as Lionel Messi or Premier League stars — earn significantly more due to longer seasons, multiple competitions, and higher revenue shares.

 

In the NFL as well, players earn over a longer season with structured contracts, bonuses, and revenue-linked payouts, making direct comparisons with IPL salaries difficult.

 

Structural constraints vs free-market systems

 

Another key distinction lies in how salaries are determined.

 

• IPL: Auction-based, salary-capped system
• European football/NFL: Contract-based systems with greater flexibility and, in many cases, higher revenue sharing

 

This means IPL players operate within a controlled financial ecosystem, whereas footballers and NFL players benefit from more market-driven wages.

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