Lalit Modi, the IPL commissioner, has insisted the US$5 million salary cap on franchisees will remain in place for at least the next two years. Modi said in a statement that the players are legally bound by their three-year contract with franchises.
"The three-year contractual clause was made public to both the franchisees and players prior to the auction (on February 20 this year) and the player's participation," he said. "All the parties will abide by the terms and conditions laid down by the governing council and it is only up to the franchisee to trade players as and when the trading window opens next year."
Ricky Ponting, Australia's captain, had earlier expressed concerns that lifting the salary cap would be "detrimental to the whole set-up" as franchises with deep pockets could end up with the best players, leading to a loss of competitiveness.
Modi also said that rules for trading of players will be issued early next year. "The IPL will issue a fresh set of guidelines on the player transfer protocols for the next season keeping in mind the transfer window," he said. "It would however, be the prerogative of the franchisee alone to take a decision to trade players, when the trading window opens in the early part of 2009 just prior to the second season."