The IPL’s Auction System and BBL’s draft system: A Comparative Analysis

Introduction

The rise of franchise based T20 tournaments has been a key factor in the growth of cricket in the 21st century. Founded in 2007, the Indian Premier League (IPL) uses a novel auction-based system for player acquisition. In this system, players are bid on by teams that have a fixed amount to spend and is a form of second price auction (Vickrey).  Later, the Australian Big Bash League (BBL) was founded in 2011. The BBL uses the well-known draft system that has been used in franchise-based tournaments such as the NBA and MLB. The draft has several rounds, with each team taking turns to pick players from the pool of available players. 

Player acquisition systems lie at the heart of sports leagues, and influence competitive balance, fan engagement and the commercial success of leagues. By ensuring a relatively equal distribution of talent among teams, player acquisition systems create excitement and sustain fan interest, as the result of the tournament is up in the air.  

This comparative analysis between the IPL’s auction system and the BBL’s draft system serves as a means to determine the effect of the various systems on the competitiveness of T20 leagues. Ultimately, this comparative study is intended to contribute insights to the ongoing evolution and refinement of player acquisition strategies, potentially influencing best practices in cricket leagues worldwide. When comparing the win rates of teams between the IPL and BBL, there appears to be similar patterns that emerge in both leagues, which suggest that contrary to popular belief, the auction system is not less competitively balanced than the draft system.

The IPL Auction

The IPL auction is a form of second price auction where teams bid on players in real time. This auction is a televised event that is announced months in advance and runs over a course of 2 days. Here is a rundown of the IPL auction.

Before the auction, a pool of players is compiled. This pool consists of new players that have registered for the auction and players that have been released by the formed franchises. Franchises have the option to “retain” up to a certain number of players for a mutually agreed price, but they also have the option to release players and let them in the auction pool. Players are categorized based on the type of player (batter, bowler, or all-rounder), nationality, experience, and playing record.

Every IPL franchise is allocated a predetermined budget also referred to as the “purse.” This cap is the amount a franchise can spend during the auction to acquire players, and it varies from team to team. Teams must navigate acquiring a full squad with the limited budget. Teams are also allowed to retain players for a price that is mutually agreed upon, but that price comes out of the salary cap.

The auctioneer introduces a player from the pool, providing information about their cricketing record, recent form, and other relevant details. Franchises then engage in competitive bidding by raising paddles to indicate their willingness to acquire the player. Bids are made in incremental amounts. Players have a base price; a minimum amount a team must bid to acquire the player. This base price is chosen by the player when registering for the auction, and it varies from 2,000,000 Rupees (~$24,000) to 20,000,000 Rupees (~$240,000). If no team bids on a player, the player is declared unsold and unless bought in a subsequent round or becomes a replacement for a player in the competition, will not participate in the IPL that year.

There are more quirks associated with the IPL auction. For further reading, consider reading https://cricketmastery.com/how-does-the-ipl-auction-work/.

Various sources have claimed the IPL auction has a significant disadvantage: That it is an unfair method of player acquisition. Financial disparities between teams is said to generate skill differences between teams, and the random nature of the auction is claimed to exacerbate this problem. (Bose)

The BBL Draft

The Big Bash League (BBL) draft system is a player acquisition mechanism that distinguishes itself in the realm of professional T20 cricket leagues. Here’s an exploration of how the BBL draft system operates:

Before the draft, a pool of players is compiled, including both established professionals and emerging talents. Players are categorized based on their nationality and experience levels, which include international, domestic, and uncapped players.

The draft process begins with a predetermined order of selection for franchises. This order is typically determined by a random draw, and the order is reversed in subsequent rounds. Players are pooled into different tiers, with respective rounds. The draft is conducted in multiple rounds, each representing a distinct phase of player selection. During each round, franchises take turns choosing players from the available pool. 

Teams may trade players after the draft and are able to call on replacements for injured players or players who are not able to attend for any reason. This allows franchises to fine tune their team following the draft.

Much like the IPL auction, the BBL’s draft system has many more intricacies. For more information, consider reading this article.

The draft system aims to distribute talent evenly among teams, preventing any one franchise from monopolizing the best players. This promotes a more competitive and unpredictable league. According to Jeffrey Rosenthal, the draft system promotes fairness because it allows for equal opportunity for weaker teams, mitigates financial disparities which fosters a sense of fairness and equity.

Does the data back the claims?

The established narrative is that the draft system of the BBL leads to a more competitive tournament, but the data does not necessarily back that statement. When comparing the win rates of teams in both the BBL and IPL, both show similar patterns, with two teams dominating both leagues.

This can be shown by the percentage of seasons won (number of seasons won/number of seasons played) in both the BBL and IPL (Only teams with over 8 seasons will be counted for the IPL.) Since there are teams that have played less seasons than others, the data for the IPL will not add up to 100%.

IPL Teams and % of seasons won:

The teams in the IPL have changed over time, so the number of seasons played by each team is not the same.

Team Name	% of seasons won
Chennai Super Kings	35.7% (5/14)
Mumbai Indians	31.25% (5/16)
Kolkata Knight Riders	13.33% (2/16)
Rajasthan Royals	7.14% (1/14)
Sunrisers Hyderabad	9.09% (1/11)
Delhi Capitals	0.00% (0/16)
Royal Challengers Bangalore	0.00% (0/16)
Punjab Kings	0.00% (0/16)

BBL Teams and % of seasons won:

The teams in the BBL have remained the same, so each team has played 12 seasons

Team Name	% of seasons won
Perth Scorchers	41.66% (5/12)
Sydney Sixers	25.00% (3/12)
Adelaide Strikers	8.33% (1/12)
Melbourne Stars	0.00%
Hobart Hurricanes	0.00%
Brisbane Heat	8.33% (1/12)
Sydney Thunder	8.33% (1/12)
Melbourne Renegades	8.33% (1/12)

As seen in the data above, both the IPL and BBL have a roughly similar distribution of tournament wins, with 2 teams winning more than twice as much as the third team.

The phenomenon of 2 teams dominating each league is further reinforced by analyzing the win rates of teams in both leagues. For the IPL, only teams that have played more than 150 games will be counted.

IPL Teams and their win rates:

Much like the previous tables, the number of games played by each team varies due to the changes in the composition of the tournaments.

Team Name	% of games won
Chennai Super Kings	58.22% (131/225)
Mumbai Indians	55.87% (138/247)
Kolkata Knight Riders	49.58% (119/240)
Rajasthan Royals	47.11% (101/208)
Royal Challengers Bangalore	47.11% (114/242)
Sunrisers Hyderabad	46.99% (78/166)
Punjab Kings	44.83% (104/232)
Delhi Capitals	43.93% (105/239)

BBL Teams and their win rates:

Different teams have played different amounts of games due to certain teams playing more playoff games.

Team Name	% of games won
Perth Scorchers	61.64% (90/146)
Sydney Sixers	56.94% (82/144)
Adelaide Strikers	49.26% (67/136)
Melbourne Stars	48.20% (67/139)
Hobart Hurricanes	47.40% (64/135)
Brisbane Heat	43.06% (59/137)
Sydney Thunder	41.48% (56/135)
Melbourne Renegades	41.66% (55/132)

For both leagues, the top two teams have win rates above 55% while the rest of the teams fall well behind.

The data does not support the assumption that the BBL teams are more competitively balanced. A possible explanation for the difference between the claims and empirical data could be the small sample size. Both tournaments are relatively new, with the IPL having completed 15 tournaments and the BBL having completed 12 tournaments. This small time frame might not be enough for clear patterns to develop in either tournament. Another explanation could be that a draft system simply does not yield more competitively balanced teams. While the IPL’s auction system does have elements of randomness, it does not have any elements that give teams outright advantages.

Additional insights

The auction-based IPL is far more popular than the draft based BBL in terms of viewership. A possible explanation for this difference could be that the IPL’s auction system serves as promotion for the tournament as it is a broadcasted event that is widely viewed. While this may be true, there are other factors that affect the popularity of both tournaments. Cricket is a much more followed sport in India, and the IPL was the franchise based cricket league, starting 3 years before the BBL. Another big factor is that Indian cricket players are not allowed to play in the Big Bash League, so there is not much viewership from the country that has the most cricket enthusiasts. 

Another difference between the IPL and BBL is that players in the IPL receive much higher compensation. An explanation could be that the IPL’s auction system leads to bidding wars that end up giving players market values that tend to be higher than their compensation in a draft system. However, due to external factors it is hard to validate the claim that this discrepancy in player compensation is due to the player acquisition system.

Conclusion

The BBL and IPL both follow the same pattern of two teams dominating the tournament even though the leagues use completely different player acquisition systems. The data suggests that an auction system of player acquisition does not yield significantly more unbalanced teams despite the notion that a draft system creates competitive parity between teams. It is worth noting that the data is limited by the fact that both tournaments are relatively new, with the IPL having 16 seasons and the BBL having 12. However, the pattern of two teams dominating the tournament is reinforced by analyzing the win rates of teams in individual games, where the sample size is much larger. 

In spite of using different methods to acquire players, the continued domination of specific teams in both the IPL and BBL highlights the complex nature of cricket’s competitive dynamics. It is important to recognize that these leagues have a relatively short history, but when we analyze individual game win rates over multiple seasons, we find a consistent pattern: certain teams consistently achieve success. This suggests that factors beyond the initial player selection phase – such as effective team management, strategic decisions made during games, and strong team unity – play crucial roles in determining long-term success. As these leagues progress, a deeper exploration of these aspects promises to provide valuable insights into why some cricket teams maintain their supremacy.

While additional patterns such as the auction-based IPL having significantly higher viewership and player compensation do exist, it is hard to credit these patterns to the type of player acquisition system, as there is a myriad of external factors that affect both player compensation and viewership.

Works Cited

Vickrey, William (1961), “Counterspeculation, auctions, and competitive sealed tenders.” The Journal of finance, 16, 8–37.

Katewa, Shrot. “How Does the IPL Auction Work? (With Rules & Process) | Cricket Mastery.” Cricket Mastery, 25 July 2020, https://cricketmastery.com/how-does-the-ipl-auction-work/.

Bose, Soumitra. “IPL Auction and Its Bewildering Dynamics.” Moneycontrol Opinion, Moneycontrol, 24 Dec. 2022, www.moneycontrol.com/news/opinion/ipl-auction-and-its-bewildering-dynamics-9757591.html.

“Ultimate Guide to the 2023 Big Bash Drafts | Sydney Thunder.” Sydney-Thunder, 1 Sept. 2023, https://www.sydneythunder.com.au/news/3663579/ultimate-guide-to-the-2023-big-bash-drafts.

Rosenthal, Jeffrey A. “The Amateur Sports Draft: The Best Means to the End? – Core.Ac.Uk.” Core, Marquette Sports Law Review, core.ac.uk/download/pdf/148695496.pdf. 

TOI. “Team with Highest Winning Percentage in IPL History: Times of India.” The Times of India, timesofindia.indiatimes.com/sports/cricket/ipl/stats/team-with-most-wins?from=mdr. 

“Big Bash League Trophy Team Results Summary | ESPNcricinfo.” ESPNcricinfo, https://www.espncricinfo.com/records/trophy/team-results-summary/big-bash-league-158. Accessed 30 Nov. 2023.

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