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Shouldn't the 25 teams get 1/25th of the tax amount? Is Napoleon keeping the other sixth?
actually that's pretty close.
according to larry coon:
* Teams under the tax level receive a full share (1/30) of the tax money. (Note that if the league expands, the fraction changes.)
* Some or all of the remaining money may be reserved by the league for "league purposes."
* Any remaining tax money that is distributed to teams must go to all teams in equal shares.
"League purposes" may include investing in some venture, or it may include distributing money back to teams. If money goes to teams, the distribution must not be based on the teams' team salaries (see question number 14) or whether the teams are taxpayers. In other words, it cannot become a disincentive for teams to spend money on players, which would constitute a secondary form of salary restraint. An example of an acceptable "league purpose" in which money goes to teams would be a revenue assistance plan designed to subsidize teams that lose money, provided that a team's entitlement is based on a profit/loss/expenses computation that assumes all teams have the same team salary, and the assistance payment is limited to the team's actual losses.
in practice, the league used the money for revenue assistance
In 2005-06, the league used all of the undistributed tax funds and none of its escrow funds to fund their revenue assistance plan. In 2006-07 it used all of the undistributed tax funds and about $20.7 million of the escrow funds for this purpose.