This week, former janitor Richard Goodall took center stage in the final of America’s Got Talent (AGT), claiming the grand prize of $1 million—at least, that’s what the show would have you believe. Like many competition shows, the drama is what keeps viewers tuning in. But is AGT’s big prize truly what it seems?
Do ‘America’s Got Talent’ winners really get $1 million?
While the winners do get a shiny new Las Vegas headline show as part of their prize, there’s more to the $1 million than meets the eye. Observant fans may have spotted a small disclaimer during the finale 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 means that winners won’t be handed a giant check for a million bucks to spend however they like. Instead, they could receive the prize in smaller annual installments—specifically, $25,000 a year for forty years. And that’s before taxes are deducted!
Forbes conducted a study in 2016 that put these numbers into perspective. Using the example of Grace VanderWaal, who won Season 12 at just 11 years old, the publication noted that by the time she receives all her prize money, she’ll be 52. After taxes, she might see only about $150,000 to $200,000 of that total, unless significant changes occur in tax laws.
If a winner opts for the lump sum payment, referred to as the “present cash value” in the disclaimer, they might only walk away with about $300,000 after taxes, according to calculations from Good Housekeeping.
So, it’s clear that AGT winners don’t get an actual $1 million in cash immediately, which raises questions about how straightforward the show is with its prize announcements. Nonetheless, this payout structure does offer a kind of financial security for the future, and many contestants have willingly signed up for it.
Now at 20 years old, Grace VanderWaal, the example of AGT’s prize complexities, has moved on to acting and is currently starring in Megalopolis, a new film by acclaimed director Francis Ford Coppola. Given the mixed reviews of the film, VanderWaal may find herself grateful for the financial backing AGT has provided as she navigates the unpredictable landscape of the arts.