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04 Jan, 2026

Mastering the Purse: How to Budget for an IPL-Style Auction

In a high-stakes auction environment, the most common mistake is not a lack of money, but a lack of mathematical discipline. Whether you are managing a 100 Crore purse or a local club budget, the principles of value-based bidding remain the same.

1. The 40/30/30 Rule

Elite franchises typically divide their total purse into three tiers. 40% is reserved for "Marquee" players (your game-changers), 30% for specialized core players, and the remaining 30% for fill-ins and young talent.

"The goal isn't to buy the best players; it's to build the best team within the constraints of your capital." 2. Accounting for the "Inflated Bid"

During the first set of an auction, prices are often inflated by up to 25% due to high energy and desperation. Organizers using AuctionAdda's "Real-time Tracker" can see these trends live and advise their owners to hold back for the middle sets where value peaks.

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