Gambhir's was the opening sale in an auction of players in the southern city of Bangalore today in which another Indian all-rounder, Yusuf Pathan, was bought by the same team for $2.1 million. Former Indian captain Saurav Ganguly and West Indies batsman Chris Gayle did not receive any bids.
The Indian Premier League Twenty20 cricket tournament is a fast-paced form of the traditional five-day sport that features four-hour matches accompanied by blaring music between bowlers' deliveries and cheerleaders.
England batsman Kevin Pietersen and Andrew Flintoff were the previous highest paid players in the league and went for $1.55 million in 2009, according to Agence France-Presse.
Robin Uthappa, another Indian batsman, was sold in the third session of the auction for $2.1 million to Team Pune. The auction of 350 domestic and international players ends tomorrow and unsold players will be put up for sale a second time.
The contracts with players are for two years and the team managements have the option to renew them for a third year on the same terms and conditions as the initial two years, according to a statement issued by the league.
The 10 participating teams have a total of $72.3 million to spend on players, according to the statement.
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