The decision was taken during the IPL Governing Council's meeting with the Supreme Court appointed Committee of Administrators (CoA) here. The other two replacement teams were formed Rising Pune Supergiants where Dhoni captaining in 2016 IPL season and Gujarat Lions for the replacement of Rajasthan Royals.
Dhoni had played for the Rising Pune Supergiants (RPS) in the last two editions but now can go back to CSK with the decision taken by the IPL Governing Council here. The IPL has also imposed a salary cap of INR 3 crore for an uncapped player retained before the auction.
An IPL franchise is eligible to secure up to five players by virtue of a combination of Player Retention (Pre Player Auction) and Right to Match (RTM) (During the Player Auction).
The other restrictions on player retention are: a maximum of three capped Indian players can be retained, and only two overseas players and two uncapped Indian players can be retained. For example, if CSK chooses not to retain Dhoni directly and he is placed on auction instead, CSK will have the right to match the highest bid for him and retain him that way. The caps for the two subsequent years have been fixed at Rs 82 crore and 85 crore respectively.More news: Donald Trump didn't crack Twitter's list of 2017's top tweets
A maximum of either three retentions or three RTM at the discretion of the franchises has been allowed.
According to report by the Indian Express, one franchise was reportedly in favour of retaining as many as five players, while another proposed retention of one player per team. Each franchise team will have a maximum of 25 players (up to eight foreign) and a minimum of 18 players. Mumbai Indians will retain Rohit Sharma, Kieron Pollard, Jasprit Bumrah, and the Pandya brothers (Hardik and Krunal) and also Royal Challengers Bangalore retains Virat Kohli, AB de Villiers, and Chris Gayle but Shane Watson is not confirmed. If they opt to retain just the one player, then they'll have to suffer a deduction of INR 12.5 Crores from their pre-auction purse.
The player auctions for the 2018 edition of the tournament are slated to be held in February. The BCCI stated that "The minimum spend will be 75 percent of the salary cap for each season".