"An IPL-type auction system is one where each team has a fixed wallet allowance. The amount is decided by the regulating authority after a thorough assessment. In theory, if you start from year 1, every team will have the same amount of money to mandatorily buy a minimum of 15 players. Teams have the flexibility to distribute their budget among players as they see fit. They can choose to spend more on marquee players or allocate their funds differently based on their team strategy and requirements. In practice, additionally, teams can also carry forward a certain portion of their unspent budget from the previous season, allowing them to have a higher budget in subsequent auctions.
The FFP (Financial Fair Play) is a system that adopts a set of regulations implemented by the UEFA to promote financial stability and fair competition in European football clubs. Under the FFP regulations, clubs are required to balance their financial books and operate within certain financial parameters. These parameters include limitations on losses, restrictions on excessive spending, and the promotion of sustainable financial practices. Though this system does not impose a cap on investments a club can make, clubs are expected to generate sufficient revenue to cover their expenses and investments, rather than relying solely on wealthy owners. It encourages clubs to focus on revenue generation through commercial activities, ticket sales, and sponsorships to maintain financial stability and self-sufficiency. "