ARN to pay Sandilands cash settlement sum of $12.09 million
ARN Media has agreed to pay its former radio broadcaster Kyle Sandilands $12.09 million to settle their employment dispute that brought down one of Australian radio's most lucrative deals.
The media company announced the settlement with Sandilands on Tuesday, saying the agreement provides for the "full and final resolution of all claims and counterclaims" between them.
Under the settlement, ARN will pay Sandilands a cash settlement sum of $12.09 million, with $3 million payable in July 2026. The rest of the balance will be payable monthly until June 2029.
"This agreement brings certainty for ARN and resolves the legal dispute," said ARN chief executive officer Michael Stephenson.
"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 agreement also states that ARN will provide Sandilands with advertising services worth $1.5 million on its partner platforms over the next three years.
Both parties also agreed to a net revenue share arrangement, with ARN to receive a contribution of 19.9% from Sandilands' new venture for up to three years. Sandilands is also barred from engaging with ARN's direct competitors for up to nine months, expiring in March 2027.
'The Kyle and Jackie O Show' dispute
The agreement settles the one of the employment disputes between ARN Media and the hosts of its KIIS FM programme, "The Kyle and Jackie O Show," which stemmed from a heated on-air exchange between Sandilands and co-host Jackie "O" Henderson in February.
Sandilands accused Henderson of being too focused on astrology during a segment about former Prince Andrew, leaving her in tears. It follows months of alleged simmering tensions between the pair that Henderson previously acknowledged publicly.
The controversy has led to major employment disputes among the parties involved. ARN Media later terminated its contract with Sandilands, prompting him to sue the organisation alleging that he was terminated without valid grounds.
Henderson's contract was also terminated in the fallout of the controversy, with the co-host's team responding with a lawsuit alleging that the termination of her contract constituted adverse action under the Fair Work Act.
ARN Media filed countersuits against the pair, alleging that they cost the company key advertising revenue through their departures and sought to recover the losses tied to the abrupt end of The Kyle & Jackie O Show's tenure on KIIS.
ARN, in its latest announcement, said its legal proceedings with Henderson remain ongoing.
