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Who gets the escrow and luxury tax money?

April 26, 2017escrow luxury money tax

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Who gets the escrow and luxury tax money?

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As described in question number 15, if the salaries and benefits exceed a designated percentage of revenue for that season, then some of the players’ salary is returned to the teams. Also, as described in question number 16, high-spending teams will pay additional money to the league in the form of a “luxury tax.” The money collected from escrow and luxury tax may be distributed to teams or used for league purposes, subject to certain rules. Note that in some cases, taxpaying teams receive more than enough money to offset the luxury tax they pay.