Shin Lim Swimming in the Dough? Not So Fast, Competition Show Winners Receive A lot Less Than We Are Lead To Believe
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Do you believe in magic? We all do after Shin Lim worked his way to victory under the eye of illusion. Lim isn’t the only one playing tricks though, America’s Got Talent may have a trick or two up their sleeve.
In every competition show there is a grand prize awarded to the winner, leaving all of the contestants mesmerized by dollar signs. AGT is no different, offering up a huge chunk of change…$1 million dollars to be exact.
Competing against dancing sensation Zurcaroh and musician Brian King Joseph, was no simple task. Lim worked his magic and stole the hearts of America! Let’s be real though, the ultimate come up is becoming a fast millionaire, and the question is…did Lim achieve this goal?
It’s all about the fine print. AGT showcases a disclaimer at the end of each episode stating: ‘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.’
Basically Lim has two options: He can choose to receive a $25k payout/year for the next forty years (which will also be taxed). Alternatively, Lim can opt to receive the entire payout immediately, which will be approximately $200,000. OUCH! I mean, winning any large amount of money is great, but he won’t even receive half of the total prize if he chooses the second option? That just doesn’t seem fair! Lim will probably make triple of what the first option offered him, but its the principle man!
The season 13 champion will perform at AGT’s Live show at the Paris Theater in Las Vegas this November. Followed by a stint on Broadway in New York. Even though Lim won’t receive the full million, he is in fact, #winning.
But what about other competition shows? Are we missing the fine print there too? Let’s take a look at American Idol. In the earlier seasons of Idol, winners received as much as $650,000 in addition to a recording contract with Hollywood Records. Flashing forward to the Idol reboot…winners will receive a cash prize of $250,000. The Idol reboot also offers a guaranteed recording contract with Hollywood Records. However, what artists don’t realize is this contract could bind them to Idol producers for SEVEN years. Not to mention the managers fee that is tacked on to the deal. Don’t get it twisted though, becoming the next American Idol is the ultimate dream. The amount of exposure that winners and contestants alike receive is immeasurable.
NBC’s The Voice season 13 is kicking off this evening, so let’s take a look at what the winner will receive. After going through the ringer and singing for their lives, The Voice winner will receive a cash prize of $100,000. To which we respond with three words…taxes, taxes, TAXES. Winners will also receive a recording contract with one of the “big three” of music labels, Universal Music Group. It’s important for artists to understand what they are signing up for. However, a true artist could care less about the money, and more about getting to share their craft with the world.