Saturday, November 30, 2013


IPL SALARY CAP FIXED AT RS 60 CRORE FOR 2014

According to reports, the Governing Council of the IPL has decided to put an upper limit on the total salary of the players for the 2014 season. A salary cap of Rs 60 crores has been projected to be imposed on each franchise. For 2013 the limit was 12.5 million dollars (Approx Rs 77 crores).

Considering the present economic conditions, all payments will be in Indian rupee. This means that foreign players who were earlier paid in dollars will be paid in Indian currency only. The salary cap is expected to rise by 5% every year.

In professional sports, a salary cap or wage cap is an agreement or rule that places a limit on the amount of money that a sporting club can spend on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both. Several sports leagues have implemented salary caps, both as a method of keeping overall costs down, and to ensure parity between wealthy and not so wealthy teams as they cannot entrench dominance by signing many more top players than their rivals. Salary caps can be a major issue in negotiations between league management and players' unions.

(Photo courtesy www.ibtimes.co.in)

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