Game Show prizes misrepresented

Discussion in 'Now Playing - TV Show Talk' started by getreal, Aug 23, 2007.

  1. getreal

    getreal postcrastinator

    4,502
    134
    Sep 29, 2003
    Earth
    NBC promotes their generosity by awarding $1m prize to winners, but the 42-year old winner would be 82 years old before he actually receives the full amount in the year 2047 for his win in 2007. And how much would $25,000/yr. be worth in 2047 dollars? Imagine winning the $10,000 Pyramid in 1973, and they paid it off over 40 years in increments of $250/yr. You'd finally be getting your last check for $250 in six years -- in the year 2013! How much more could you have done with that $250 cash back in '73 compared to today in 2007 or in 2013?

    http://www.realitytvworld.com/news/terry-fator-crowned-america-got-talent-second-season-winner-5668.php
     
  2. Amnesia

    Amnesia The Question

    11,403
    528
    Jan 30, 2005
    Boston, MA
    "Misrepresented"? In what way?

    The guy's getting $1M. That's what was promised. Did they say that they'd get a single check for $1M?

    Didn't the contestants get to read the rules on payouts before they signed up?
     
  3. anom

    anom Enlightened

    7,696
    0
    Apr 18, 2005
    If I lose, I get my Turtle Wax and Rice-a-Roni up front, right?
     
  4. IndyJones1023

    IndyJones1023 Auteur

    54,083
    372
    Apr 1, 2002
    Orlando, FL
    You get one grain of rice a day for the next 40 years.
     
  5. getreal

    getreal postcrastinator

    4,502
    134
    Sep 29, 2003
    Earth
    Well, I just watched the last 10 minutes of the show, but Springer clearly said that "the winner will wake up tomorrow with $1m and the title of America's Got Talent champ." So that implies that the winner would receive $1m that night before he goes to sleep. If it's clarified in the contestant's fine print contract when they sign on to do the show (and it should be), that's okay for the contestants, but it's certainly misrepresented to the viewing audience, IMHO.
     
  6. doom1701

    doom1701 Time for a new Title TCF Club

    26,487
    415
    May 15, 2001
    Grand...
    That's how most million dollar contests work. Heck, the lottery has been doing that for ages. I'm sure it's well represented in the paperwork you sign when you want to be on one of those shows.


    Man, only several hundred thousand dollars? How will he eat?
     
  7. TAsunder

    TAsunder Debates Ghee vs Gi

    23,078
    2,121
    Aug 6, 2003
    Madison, WI
    I don't think that's how most of them work. The lottery does, but not game shows.
     
  8. getreal

    getreal postcrastinator

    4,502
    134
    Sep 29, 2003
    Earth
    Well, in Canada, when you win $10m in the lottery, you get a check (cheque) for $10m. Tax free.
     
  9. Jebberwocky!

    Jebberwocky! Guest

    11,759
    0
    Apr 16, 2005

    Using 8% discount rate, the value of $25,000 a year for 40 years in 2047 dollars is approximately $7 million ;)

    Using 8% discount rate, the value of $25,000 a year for 40 years in 2007 dollars is approximately $325 thousand :D
     
  10. doom1701

    doom1701 Time for a new Title TCF Club

    26,487
    415
    May 15, 2001
    Grand...
    There's, what, 3 or 4 "Million Dollar" shows? I'm asking--I don't watch much TV.

    But every million dollar giveaway run by something like McDonalds, or Doritos, or any other company that would do a contest like that is done as either a 20 or a 40 year payout (well, maybe there's some 30's as well).
     
  11. dswallow

    dswallow Save the ModeratŠ¾r TCF Club

    53,737
    2,554
    Dec 3, 2000
    Long...
    Wow, I never expected that. In this day of production costs for an episode of a TV series being in the $2 million to $4 million range, I would never have expected these prizes to be paid as annuities. That's extraordinarily cheap of the producers.
     
  12. Jebberwocky!

    Jebberwocky! Guest

    11,759
    0
    Apr 16, 2005

    cheap or really smart?
     
  13. marksman

    marksman ID-10-T

    16,781
    0
    Mar 4, 2002
    Yeah it is very common for almost all sweepstakes to pay out in annuities.

    I agree with Dswallow though, the networks are cheap. It is ridiculous that the prize for 13 weeks of Survivor is 1 million dollars or for close to 50 shows for Big Brother is $500,000.

    That is why I think anyone who goes on these shows are foolish. They are seriously being taken advantage of...

    A nobody on a sitcom who is in every episode is going to make as much as someone who wins a show like Big Brother.

    The biggest stars will make more than the winners every episode.

    All that being said, I don't know that paying out a million dollars in an annuity is misleading. It is cheap, but not really misleading.
     
  14. Amnesia

    Amnesia The Question

    11,403
    528
    Jan 30, 2005
    Boston, MA
    The difference is that you need talent (or at least a good agent) to get a job on a sitcom. You don't need anything to be on a reality show...
     
  15. brnscofrnld

    brnscofrnld where is this place?

    2,764
    0
    Mar 29, 2005
    NW. DC.
    I'd take the 25k per year, but then again, I'm only 24.

    Great supplement for your current salary no matter what your current income is.
     
  16. That Don Guy

    That Don Guy Now with more GB

    3,390
    99
    Mar 13, 2003
    Benicia, CA
    Actually, every AGT episode this season has mentioned that the prize was "paid from an annuity over 40 years" in the closing credits, and that the winner has the option of taking the current value of the annuity instead. (At least they mentioned it this year; no one has said if Bianca Ryan's prize from last year was handled the same way or not.)

    Nothing new about paying large game show prizes over time; back in 1976, the top prize on $100,000 Name That Tune was $10,000 a year (they mentioned this every time someone had a chance to win it), and a few years later, the prize on $1,000,000 Chance of a Lifetime was also paid out over time (I think it was 25 payments of $40,000, but I'm not sure). (On the other hand, the two grand prize winners on The $128,000 Question in the mid-1970s were paid all at once.)

    For the record, the closing credits on Power of 10 say that "some prizes are paid out over time."

    (And speaking of Terry Fator's "bonus" prize on AGT, while they said he would be playing the Jubilee Room at Bally's, they didn't say if he would be headlining his own show or just be part of the existing "Jubilee" seven-act cabaret show...)

    -- Don
     
  17. martinp13

    martinp13 Roller coaster addict :)

    11,911
    369
    Mar 19, 2001
    Fort Worth, TX
    smartly cheap!
     
  18. ping

    ping New Member

    1,205
    0
    Oct 3, 2005
    Doesn't bother me much (I stopped watching a few episodes ago. I might watch the finale if I'm bored), but somebody should probably put a spoiler warning in the title or tag the spoilers.
     
  19. MikeMar

    MikeMar Go Pats

    45,317
    859
    Jan 7, 2005
    Boston...
    isn't this the EXACT same as the lottery?

    even if you get hit with like 50% tax or whatever, it's better to take the lump sum and invest it then the 40 year thing.

    do not see at ALL what the big deal is.

    Take the lump sum $1 million, uncle sam hits you for a lot of.

    Do you want NBC to pay $1 million PLUS taxes?? :D
     
  20. dagap

    dagap New Member

    2,199
    0
    Dec 5, 2003
    Alpharetta, GA
    So where's the line? It'd be much cheaper to stretch it out 50 years or more. Why not 100 years?

    "And here's America's Newest Millionaire!!! ****"

    (**** paid in 1,200 monthly installments of $833.33)
     

Share This Page