Radio shock jock Kyle Sandilands has agreed to a $12 million settlement package with his former employer ARN, with a twist that will see the broadcaster given an extra $1.5 million in advertising on the network.
In a statement to the market this morning, ARN said it had agreed to pay Sandilands a settlement sum of $12.09 million, with $3 million of the package payable in July 2026 and the balance payable monthly until June 2029.
Former breakfast radio stalwart Kyle Sandilands has reached a settlement with his former employer ARN. Louise Kennerley
Sandilands has told the network he “intends to pursue independent media opportunities”.
As part of the settlement, ARN will provide Sandilands with “advertising services on ARN’s partner platforms”, worth $1.5 million over the next three years.
ARN’s Chief Executive Officer Michael Stephenson said the deal ends legal action between the two parties.
“This agreement brings certainty for ARN and resolves the legal dispute,” Stephenson said.
“ARN remains focused on executing its strategy, including driving a leaner, more efficient operating model, strengthening its core radio network and continuing to invest in digital capabilities and long-term growth.”
The settlement comes after Sandilands took legal action against his former employer, after terminating his $100 million KIIS FM contract earlier this year.
The settlement will now end one of two lawsuits brought against ARN after the end of the Kyle and Jackie O Show in February following an on-air bust up between its two stars.
Jackie ‘O’ Henderson also launched a lawsuit against her former employer claiming compensation of at least $82.25 million and alleging that her termination was against the Fair Work Act.
The dual lawsuits came about after Sandilands berated Henderson on-air for her “obsession” with astrology and questioned her work ethic, which led to an on- and off-air clash between the hosts.
This ultimately led to the end of their 25-year on-air partnership.
The Kyle and Jackie O show ended in February, after a 25-year on-air partnership, and lead to the dual lawsuits from Sandilands and Jackie ‘O’ Henderson against ARN. ARN
Henderson considered it the final straw in what she claimed to be extended bullying from her co-host and filed a formal complaint with her employer, stating she could no longer work alongside Sandilands and didn’t feel safe to do so.
This led to Sandilands being suspended for two weeks over his behaviour, which ARN labelled “an act of serious misconduct” and a breach of contract.
The radio network subsequently terminated Henderson’s existing contract and offered her an alternative show on the network.
The major falling out between KISS FM’s two biggest stars came just one year into a $200 million 10-year contract with ARN, leading the two popular personalities to take their former employers to court.
They’d been labelled “arguably Australia’s most famous and possibly most successful radio show of all time” but the Sydney-based duo struggled to bring in the numbers when they were syndicated south of the border.
The Kyle and Jackie O Show was advertised on billboards in Melbourne as the pair struggled to crack the market there. Paul Rovere/Nine
After dominating the airwaves in Sydney for decades, taking the top spot in consecutive FM radio surveys, they had the sucker punch of coming in sixth place in Melbourne at the end of their first year.
Many radio insiders believe this was the beginning of the end for the pair as they felt the pressure to perform after the slot shed 140,000 listeners in Victoria.
Sandilands has vowed to return to the airwaves in some way, shape or form but Henderson’s radio future remains more uncertain.