Gayle was not among them and, with players not eligible to be selected if they failed to make their allotted price point, the 37-year-old will be absent from the competition.
A total of 570 players will be in the men's draft, including 239 overseas players and 331 domestic players.
Harbhajan is currently doing commentary for the India versus South Africa series.
The former Australian batsman who represented his country in 27 Tests and 117 One Day Internationals was part of the Yorkshire side that won the county championship in 2001, their first since 1968.
World Cup-winning coach Gary Kirsten will coach the men's Cardiff team while Matthew Mott will be in charge of the women's team at Cardiff.
McDonald is the second Australian to be confirmed as a coach in the new competition, following the appointment of Simon Katich to take charge of the Manchester team.