America’s Got Talent star: $1 million prize actually worth about $200,000

Discussion in 'The Howard Stern Show' started by MutteringJohn, Jul 2, 2012.

  1. MutteringJohn

    MutteringJohn Well-Known Member

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    America’s Got Talent’s fifth winner, Michael Grimm, received only about $200,000 as his prize for winning the show, which advertises its prize as $1 million. That’s because he took the lump sum, instead of getting paid over time, and
    During the show’s second season, I analyzed the fine print of the show’s $1 million prize in detail, discovering that it was worth about $375,000 after taxes, but that was based on 2007-era assumptions about tax rates. The key is that the prize is not $1 million: it’s $25,000 a year or a lump sum.
    The Sun-Herald reports that Grimm ultimately received “a little more than $200,000, he said, once the network got its cut of more than 50 percent and he paid taxes on the lump sum he received.†It’s not clear what NBC’s “cut†means, whether he had to pay them something, or if it’s just referring to the reduced value if one opts for the lump sum.
    Sunday, Grimm’s grandparents moved into a new house; theirs was destroyed by Hurricane Katrina, and Grimm vowed to build them a new house when he won in 2010. That was delayed by shoddy work done by an unlicensed contractor that had to be fixed, according to the paper.
     
  2. Peau de Soie

    Peau de Soie Edit Button? Thanks LaserTilt!

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    That's a LOT more than I would have expected it to translate to, based on the lousy 25K/year base.
     
  3. illini fan

    illini fan New Member VIP

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    Its all bullshit,,same with lotto jackpots and progressive slot machine jackpots..With my dealings with IGT, the mega-million slot machine jackpot totals are paid over 25 years...Horse-shit.............
     
  4. FCCstandards

    FCCstandards Non-Essential Salooner VIP

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    It's called taxes. Why do you think Rich and Ron would blow each other for a million "after taxes" ? Taxes suck the life out of everything. Also NBC is saving the monies in an account to make more money off the interest. Maybe?
     
  5. dr retarded

    dr retarded New Member Banned User

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    "Million Man March" metrics at work at here.

    First time anybody used "work" and Million Man March in the same sentence.
     
  6. Uncle Larry

    Uncle Larry Well-Known Member VIP

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    No surprise - the old time value of money shrinking the real worth of the stated prize amount.

    Too bad the compensation for the judges isn't paid in installments over 40 years.
     
  7. OV

    OV Rapscallion

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    That 37.5% of total is approximately consistent with the typical taxes and and result of electing to take a lump sum up front on a winning lottery ticket instead of betting you'll live through the 20-30 years of annuity disbursements.
     
  8. shitcunt

    shitcunt Well-Known Member

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    The winner should be dragged out behind the chemical shed and shot.
     
  9. Ronniecheated

    Ronniecheated Well-Known Member

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    What happened to the Bleak that washed cars? I could use a good detailing.
     
  10. DogStar69

    DogStar69 Well-Known Member

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    Sucks if it's one of those stupid dance crews, you have to split it 5 ways or more and the idiots will be getting $100 a month for 20 years.


    I wonder if they give you a show in Vegas and if you get paid for it or they will just own you for $500 a week.

    Either way it's disgusting that they pay Howwig $15 million or more and a winner can't get a full $1 million.
     
  11. racerx

    racerx New Member

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    yea. and whats even sadder is these idiots would gladly do it for nothing, just to be on tv
     
  12. Murcielago

    Murcielago Smoke me a kipper, I'll be back for breakfast

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    Should have consulted with a third party about trading the payment schedule for a lump sum, I'm sure he could have done better than what NBC offered.
     
  13. ejjames

    ejjames New Member

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    I guess there really is a market for those "lump sum", "It's your money, use it when you need it" outfits. Sorry, I can't remember their names.

    Does anyone know what kind of fees or percentages these businesses charge?
     
  14. BethSucks

    BethSucks Well-Known Member Staff Member

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    Whatever scary talent Michael Grimm won this farce with didn't exactly make him a household name. At least some of those AI clowns make a living in the entertainment industry
     
  15. DogStar69

    DogStar69 Well-Known Member

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    Worst part is $200k, but then the government takes between 33 to 50% in taxes.
     
  16. Peau de Soie

    Peau de Soie Edit Button? Thanks LaserTilt!

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    Uh, no. :)

    Read the last paragraph.
     
  17. usedtampon

    usedtampon Well-Known Member

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    The 2007 AGT winner signed a 5 year/$100 million contract in Las Vegas.
     
  18. k4D3t

    k4D3t Reverse Apache Master VIP

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    survivor hands you a check for a million dollars -- none of this annuity bullshit
     
  19. Wangold

    Wangold Well-Known Member

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    What fucking bullshit!!!! First prize is an annuity?