Got this message from Feigan's blog:

"Assuming Dikembe at $1.8 million, signing Carl Landry and waiving Bob Sura, the Rockets would be $2.8 over the luxury tax line. Counting the money over the tax, the tax and the escrow money they would no longer receive, that would be a hit of roughly $10 million."

Can anyone explain how this ESCROW thing works? I used to think it will be a dollar to dollar penalty for the part of the salary over the luxury limit. But it seems there is more charge?

Thanks in advance!