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The guy who won America's Got Talent, well he will get the million bucks...after 40 YEARS!!! Yep, that is a whopping $25,000/year, before taxes. Take the lump sum and get around $425,000, take away taxes and you get $325,000. Sure, I would take that any day of the week, but that's not the point. The point is that no one is going to take the 40 year payout. NBC knows this. Hell, you would be lucky to live to see it all. And how much would $25,000 buy you in the year 2050? A pizza and a tank of gas? No, the point is that NBC makes a million off of ONE commercial during ONE episode of AGT. NBC can afford to cut the winner a check right then and there for the million. It's a scumbag move and teaches the winner, who is trying to make it in showbiz, that those in charge are out to rape you for everything you got. The truth is that when you add in what NBC has made off the talent of these desperate people, that $325,000 is almost slave labor. Of course there's always the hope of the new star making big $$$ from touring or an album or the Vegas show. However, how many of them will truly go on and hit it big? Not many. I know none of this is anything new, but 40 years is the uber scumbag move of all time, in my opinion.
I imagine most contestants are happy with their '15 minutes of fame' on AGT and that the million dollars, or whatever they would get, would just be a bonus to them, even if they thought they would be lucky enough to make it that far to the end.
Many of these contestants alread have agents signing them up for deals right now. The final 10 go on tour next week and do get paid for their efforts.
And yes NBC could afford the payout, but like the jackpot lottery winners, annuities are the norm. It's all business and thats what they are in there for, the profits.
If I were to win that amount and I'd take the long term pay out, collect the interest, and put the balance into my will for my younger family to get after my demise. This way I can rest assured they get something for years to come.
You may do it differently, that's why we're all different, what makes the world go round.
The guy who won America's Got Talent, well he will get the million bucks...after 40 YEARS!!! Yep, that is a whopping $25,000/year, before taxes. Take the lump sum and get around $425,000, take away taxes and you get $325,000. Sure, I would take that any day of the week, but that's not the point. The point is that no one is going to take the 40 year payout. NBC knows this. Hell, you would be lucky to live to see it all. And how much would $25,000 buy you in the year 2050? A pizza and a tank of gas? No, the point is that NBC makes a million off of ONE commercial during ONE episode of AGT. NBC can afford to cut the winner a check right then and there for the million. It's a scumbag move and teaches the winner, who is trying to make it in showbiz, that those in charge are out to rape you for everything you got. The truth is that when you add in what NBC has made off the talent of these desperate people, that $325,000 is almost slave labor. Of course there's always the hope of the new star making big $$$ from touring or an album or the Vegas show. However, how many of them will truly go on and hit it big? Not many. I know none of this is anything new, but 40 years is the uber scumbag move of all time, in my opinion.
I'd be on a reality show if it was a "positive" one (like Top Chef, American Idol, or How Do I Look?).
I don't/didn't watch America's Got Talent, but it sounds like the winner made out okay. He's richer than he WAS.
As far as AGT, a lot of those people get contracts, gigs, etc. on the back of it so it definitely worth it for them. But yeah, it is ridiculous to pay over 40 years.
I can't speak for all game shows, but some are that way too. The smaller amounts are paid out, but after a point, you either choose a smaller amount or an annuity.
I don't think this decision has anything to do with the network. Most people would choose this
particular IRS annuity option (see post quote) in order to avoid paying the lump prize earnings tax sum. This way they only have to pay taxes on the money as it is received, much like an IRA. $25,000 a year is not that much of a tax liability.
Quote:
If, not later than 60 days after the winner becomes entitled to the prize, the winner can choose the option of a lump sum or an annuity payable over at least 10 years, the payment of winnings is considered made when actually paid. If the winner chooses an annuity, file Form 1099-MISC each year to report the annuity paid during that year.
Well I think the reality TV gigs pay 10k an episode, and of course appearance fees at State fairs and dry cleaners for life which beats $7 an hour at WalMart.
Some of you are missing the point. The point is that the performer is getting slave wages compared to what the network and the producers take in return off of THEIR talent.
Well I think the reality TV gigs pay 10k an episode, and of course appearance fees at State fairs and dry cleaners for life which beats $7 an hour at WalMart.
Not even close. The contestants on the "talent" shows are given room/board and a stipend. They may get a small salary, but it's nowhere near 10k. Even the Real Housewives were only getting 3 to 4k per week of shooting. If it's a "reality" show like Jersey Shore, of course the CAST of that show can demand more because of the sponsor money that show brings in.
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