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This week, former janitor Richard Goodall sang his way to the grand prize of $1 million in the America’s Got Talent final — or so the show claims. Like many competition shows, drama is the most important element to keep viewers hooked. Keeping that in mind, is AGT’s big moment every season quite what it seems?
At least they have the other grand prize — the winner’s very own Las Vegas headline show — to enjoy if not.
A small disclaimer on America’s Got Talent reveals the prize isn’t quite what it seems
Eagle-eyed fans may have noticed the tiny text on the screen during the AGT final, that reads:
“The prize, which totals $1,000,000, is payable in a financial annuity over forty years, or the contestant may choose to receive the present cash value of such annuity.“
This isn’t quite the same as receiving a comically-sized check for seven figures that can be spent right away at your own volition, although that amount of money on any creative talent’s side is certainly not something easy to turn down.
A 2016 study by Forbes crunched the numbers and found that this is $25,000 per year for forty years, but this is before tax deductions come into play. The financial publication used the example of Grace VanderWaal, who won season 12 of the long-running reality series at the age of 11. Forbes estimates that by the time VanderWaal gets all of her prize money, she would be 52 years old and would’ve likely only received $150,000 – $200,000 after tax unless the law seriously changes between now and then.
If an AGT winner, such as VanderWaal, were to take a lump sum over the payout, referred to as the “present cash value” in the disclaimer, this would only total $300,000 after taxes, according to calculations by Good Housekeeping.
It’s safe to say that America’s Got Talent winners don’t get $1,000,000 cash in hand, so there’s an element of misleading here. However, the money is a safety net of sorts for the future, and many have happily signed up for this endeavor.
Now 20 years old, Grace VanderWaal, Forbes’ example of AGT‘s shortcomings when it comes to the grand prize, has branched out into acting and is currently starring in Megalopolis, a new film by legendary director Francis Ford Coppola. Given the polarized reception of the epic, VanderWaal may appreciate the financial support AGT has provided for her in the tumultuous world of the arts.