but they have the same purpose: control the spending.

The escrow system ensures the Salary&Benefit of the league not exceed 57% of the league revenue. the percentage may be changed every year.In order to do this, some portion of money is withheld from a player's paycheck and put into a escrow account. At the end of the season, the league will compare the S&A with the total Revenue. If the spending didn't surpass the designated percentage(57%), the money in the escrow account will be returned to the players.

The luxury TAX controls teams' spending, A team pays one dollar on one dollar the payrolls over the TAX level.2007-08 the TAX level is almost same as that of 2006-07, 67 million.

So the rockets will pay 2.8mil luxury Tax + 10% players payroll + Tax = 10 million.