Ravindra Jadeja has just done something rare in IPL economics. He has walked away from an INR 18 cr fee at Chennai Super Kings and signed for Rajasthan Royals at INR 14 cr, taking a straight INR 4 cr cut on his league fee.
The obvious question is why the number dropped and how the money actually moves.
How the 18 crore became 14 crore
First, the basic facts. Before this trade cycle, Jadeja was CSK’s top retention at INR 18 cr. However, he is taking a pay cut of INR 4 cr to join the Royals ahead of the next season. Sanju Samson, meanwhile, joins CSK at his existing INR 18 cr bracket.
The key to decoding the drop is IPL Player Regulations Rule 59.1. Under this clause, when two franchises agree to reduce a traded player’s league fee, the difference between the old and new fee is defined as a “Negotiated Decrease”. That entire difference must be paid by the selling franchise to the buying franchise as a one-time amount, and BCCI’s approval is required for any such trade. Separately, the player must voluntarily agree to the decrease in writing for the BCCI to clear it.
Apply that to the Jadeja case. CSK had him locked at INR 18 cr; RR wanted him at INR 14 cr to avoid losing an extra INR 4 cr from their auction purse if they carried him at the higher slab. If the Royals had taken Jadeja on 18 cr, they would have forfeited those four crores from their purse, so they instead used Rule 59.1 and a mutually agreed fee cut. On paper, his new RR contract is INR 14 cr. The background CSK owe RR those INR 4 cr as the negotiated decrease, paid once when the transfer agreement is signed.
What Rajasthan did with the 4 crore
The INR 4 cr RR saved in the deal has been used in their wider strategy. By not carrying Jadeja at INR 18 cr, the Royals effectively freed up four crores in their structure, which allowed them to bring in Sam Curran at INR 2.4 crore and Donovan Ferreira at INR 1 crore from Delhi Capitals and still have INR 60 lakh left, all while replacing Samson’s 18 crore contract with Jadeja at 14.
The net result: Ravindra Jadeja’s booked salary drops from 18 to 14, CSK compensates RR for the gap under Rule 59.1, and Rajasthan uses that band of money to deepen their squad. The pay cut is real on Jadeja’s ledger, but the INR 4 cr doesn’t disappear – it is the hinge around which the entire Jadeja-Samson-Curran puzzle has been built.