Richard Madley explains currency shift from USD to INR in IPL auction

In the early years, US dollars (USD) were used for all IPL (Indian Premier League) auction operations. In other words, while introducing a cricket player, the auctioneer would state the base price in US dollars. Later on, though, the IPL governing council requested that the auctioneer use the Indian Rupees (INR) in the player auction, hence the rule was modified.

Richard Madley, a former IPL auctioneer, explained why, saying that the teams struggled to negotiate in US dollars.

For the owners and team management, it was made even more difficult by the ongoing fluctuations in the value of the US dollar relative to the Indian rupee. He observed that as the process grew more manageable, budget-friendly, and under control for all teams, the franchises felt more at ease dealing with Indian rupees. He continued by saying that because of his background in the USA, dealing in USD was simple for him; nevertheless, because of these issues, it had to be modified.

Since I had been an auctioneer in New York for ten years, I was accustomed to dealing in US dollars, so it was quite simple for me, but the franchise owners didn’t like it. The participants were benefiting from currency fluctuations, Madley said exclusively.

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“The players preferred being paid in US dollars, so when the dollar appreciated versus the rupee, it was decided to switch to Indian Rupees (INR) instead of USD, which simply made it easier for the franchise owners to control, manage, and budget for,” he continued.

On November 24, the IPL 2024 super auction will begin.

The next IPL mega auction is scheduled to happen in Jeddah, Saudi Arabia, on November 24 and 25. Rishabh Pant, Shreyas Iyer, KL Rahul, Trent Boult, Mitchell Starc, Mohammed Shami, Yuzvendra Chahal, Jos Buttler, David Miller, and a number of more well-known players will be put under pressure.