dailytelegraph.com.au— Australian Idol survivor Damien Leith sold more than $5 million worth of records when he won the 2006 crown but had to sell his car to pay the rent.
Sep 19, 2009View in Crawl 4
"Ultimately there's a "responsible" adult somewhere who just throws their hands in the air and let's their precious darling buy any old garbage, instead of exercising some judgement and taste."Your saying just because you don't like it other people should not be allowed to buy it, I don't like rap or hip hop but I'm not going to stop people from getting it.
yaosio is right. It's called the time value of money. Assuming a 5% per year interest rate, if you take the annual payments it would be the equivalent of receiving a lump sum of:(1 - T) * 25,000 / 0.05 * (1 - 1/1.05^40) ~= (1 - Ta) * $430,000where Ta is the tax rate. If you get a $1,000,000 lump sum today you would get (1 - Ts) * $1,000,000Even if Ta = 15% and Ts = 55%, the annual payments are worth $365,500 and the lump sum is worth $450,000Nerys, US government bonds give you a (almost) risk-free investment that is pegged to inflation. That is why getting the money sooner is more valuable. 5% may not seem like a lot but it only takes about 14 years for something invested at 5% to double in value. In 28 it becomes 4x, in 42 it's 8x.
Always smart to take the lump sum up front- even if it's only half. Say that jackpot is $200 million annuity and $100 million cash.$100 million cash minus taxes is going to be between $60-65 Million depending on what state you live in.With $60 million you'd only need about 6 1/2 points a year interest to get 200 million/I'd be willing to bet I could get a least 12-13% annually even if I only invested half/
I don't care what the contract said. My point stands. he had NO SAY in the contract the terms were you accept our terms 100% or you walk.Its not supposed to be that way. Recording them himself is what he is doing now but its taking time REALITY is not waiting for him to earn that money. He was depending on SOME sort of payout from the event and it was NOT an unreasonable (contract or otherwise) expectation.Thats the whole point. These labels should NOT HAVE this much power.
.The problem is they are too powerful. Money rules all governments and all court systems and all the power in the world. If some wealthy record company wants to f**k up the lives of some talented people, they are free to do so.
darkphenoxSep 20, 2009
"Ultimately there's a "responsible" adult somewhere who just throws their hands in the air and let's their precious darling buy any old garbage, instead of exercising some judgement and taste."Your saying just because you don't like it other people should not be allowed to buy it, I don't like rap or hip hop but I'm not going to stop people from getting it.
krazikamikazeSep 20, 2009
yaosio is right. It's called the time value of money. Assuming a 5% per year interest rate, if you take the annual payments it would be the equivalent of receiving a lump sum of:(1 - T) * 25,000 / 0.05 * (1 - 1/1.05^40) ~= (1 - Ta) * $430,000where Ta is the tax rate. If you get a $1,000,000 lump sum today you would get (1 - Ts) * $1,000,000Even if Ta = 15% and Ts = 55%, the annual payments are worth $365,500 and the lump sum is worth $450,000Nerys, US government bonds give you a (almost) risk-free investment that is pegged to inflation. That is why getting the money sooner is more valuable. 5% may not seem like a lot but it only takes about 14 years for something invested at 5% to double in value. In 28 it becomes 4x, in 42 it's 8x.
joehagueSep 20, 2009
Always smart to take the lump sum up front- even if it's only half. Say that jackpot is $200 million annuity and $100 million cash.$100 million cash minus taxes is going to be between $60-65 Million depending on what state you live in.With $60 million you'd only need about 6 1/2 points a year interest to get 200 million/I'd be willing to bet I could get a least 12-13% annually even if I only invested half/
nerysSep 20, 2009
I don't care what the contract said. My point stands. he had NO SAY in the contract the terms were you accept our terms 100% or you walk.Its not supposed to be that way. Recording them himself is what he is doing now but its taking time REALITY is not waiting for him to earn that money. He was depending on SOME sort of payout from the event and it was NOT an unreasonable (contract or otherwise) expectation.Thats the whole point. These labels should NOT HAVE this much power.
arunforceSep 20, 2009
Wow, three kids getting all butt hurt over a joke?
riverstyxSep 21, 2009
"Helping the artists" my ass!
arthursucksSep 22, 2009
Que "The Producers."
igriftOct 8, 2009
.The problem is they are too powerful. Money rules all governments and all court systems and all the power in the world. If some wealthy record company wants to f**k up the lives of some talented people, they are free to do so.