Sandilands sues radio giant over $100m contract feud
Shock jock Kyle Sandilands has told his old boss to prepare for a courtroom showdown for unlawfully terminating his contract after his split with his co-host.
Source: AAP
Former prize host Kyle Sandilands has launched legal action against the network behind the axed Kyle and Jackie O Show, claiming wrongful termination.
Sandilands and his companies filed a claim in the Federal Court on Friday night after market close, ARN said in a statement to the ASX on Monday.
The former top-rating host alleges the termination of his contract with ARN and subsidiary Commonwealth Broadcasting Corporation was invalid because there was no act of serious misconduct, the ARN statement said.
ARN said Sandilands was also claiming the termination was in breach of the Australian Consumer Law.
Sandilands seeks an order for specific performance of two contracts, payment of whatever amounts are due and payable under the contracts at the time of judgment, and damages.
The radio company said it disputed the claims and intended to defend them.
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ARN tore up Sandilands’ $100 million contract last week after an on-air bust-up with co-host Jackie “Jackie O” Henderson ended their time together on their KIIS FM show.
The Kyle and Jackie O Show was a consistent ratings hit in Sydney but had failed to gain much traction in its expansion to Melbourne and Brisbane.
The first radio ratings survey result of the year, released last week, found the show was in eighth place in Melbourne, with 5.1 per cent of the market – up a slender 0.1 per cent.
In Sydney, in the same time frame, Henderson and Sandilands had a 12.7 per cent share, four percentage points behind market leader Ben Fordham from Nine-owned 2GB.
The Sydney Morning Herald reported that the show had cost KIIS more than 220,000 listeners at breakfast time since its Melbourne launch – or 36 per cent of its audience. In Sydney, meanwhile, it’s latest result marked an audience loss of 215,000 listeners, or 25 per cent, compared to the same survey result two years ago.
The first ratings period of 2026 rang from January 18 to February 28. Henderson walked out on February 20, following an on-air tirade from Sandilands.
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“You’re off with the fairies … every segment, every time you’ve spoken, you don’t even know what’s going on,” Sandilands told her, criticising her examination of former prince Andrew Mountbatten-Windsor’s horoscope.
ARN said Henderson gave notice she could no longer work with her co-host, triggering an early March decision to terminate her $100 million agreement.
Sandilands was suspended on March 3 and issued a breach notice for serious misconduct.
He has consistently denied breaching the terms of his contract.
“I’ve got a contract until 2034. I’ve got rights under that contract. And ARN hasn’t honoured the contract. So, it’s over to my lawyers,” he said last week.
The financial impact of the litigation on the already struggling radio company could not be assessed at this early stage, ARN said in its statement.
“ARN disputes the claims. It intends to defend the proceedings. Given the early stage of the matter, ARN is unable to reliably estimate the outcome or any potential financial impact,” it said.
Share prices in the company have fallen 64 per cent since the 10-year deals with Sandilands and Henderson were signed in November 2023.
-with AAP
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