prize is not what it seems
A disclaimer explains: Adidas Country OG Ireland prize, Buy Nike Air Zoom Structure 21 Men Blue Orange Ireland 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. Kirzner of the Joseph L. Rotman School of Management at the University of Toronto says AGT should be more transparent.
If the winner chooses instead to take the present cash value of the annuity, Kirzner figures he or she would get about $430,000 (based on a fixed rate of 5 per cent), less state and federal taxes.
According to Reality Blurred, Buy Adidas Equipment Support ADV BB1306 Men Grey White Ireland AGT Season 5 winner Michael Grimm took home a little more than $200,000 after choosing the lump sum option.
Season 2 winner, ventriloquist Terry Fater, signed a five year $100 million contract in 2008 to perform at The Mirage in Las Vegas. But other AGT winners haven found the same good fortune (just ask Bianca Ryan, Neal E. Boyd, Kevin Skinner or Landau Eugene Murphy).