Legal storm likely to emerge over alleged contract breach
Kyle Sandilands is preparing to sue ARN Media if the company moves to terminate his contract over an alleged breach of its services agreement, with insiders claiming the radio star is ready for a protracted legal battle, according to reports.
Multiple ARN sources told The Age, on condition of anonymity because they are not authorised to speak publicly, that the KIIS FM host has already taken legal advice and believes he has strong grounds to challenge any dismissal.
One employee said: "Kyle will definitely sue," adding that the agreement between Sandilands and ARN "acknowledges the type of performer Kyle is: that he's robust and a maverick‑type character, and that's something ARN has traded on for many years and gotten a lot of success out of."
Radio dispute
The dispute stems from a heated exchange during the 20 February broadcast of The Kyle and Jackie O Show, when Sandilands berated long‑time co‑host Jackie "O" Henderson on air and accused her of being distracted and too focused on astrology during a segment tied to former prince Andrew Mountbatten‑Windsor.
Henderson was left in tears and subsequently told management she could not continue working with him.
In a market announcement on March 3, ARN told investors that Henderson had given notice she "cannot continue to work with Mr Kyle Sandilands."
As a result, ARN said it had terminated the services agreement with Henderson Media Pty Ltd, under which she presented the programme, and that she would "cease to present the Kyle and Jackie O show," while being offered the possibility of an alternative show on the network.
The same ASX notice confirmed that ARN has issued written notice to Sandilands and Quasar Media Services Pty Ltd, the production company through which he appears on air, stating it considers his behaviour on February 20 to be "an act of serious misconduct" that is in breach of its services agreement.
Sandilands has been given 14 days to "remedy this breach," after which ARN has indicated it will terminate the services agreement with Quasar Media if it is not satisfied.
ARN has linked the incident to contractual clauses requiring Sandilands to avoid conduct that could harm colleagues, the workplace environment or the company's reputation, and has characterised his treatment of Henderson as crossing the line set by those standards.
Sandilands' likely argument
According to The Age, Sandilands' legal team is expected to argue that ARN has long encouraged and profited from his abrasive on‑air persona and that the network retains ultimate responsibility for what goes to air because of its censor and delay systems.
Insiders told the news outlet that his contract "makes numerous mentions of his broadcasting style" and that ARN operates two full‑time censors on a 30‑second delay, effectively approving every piece of content broadcast.
Media and entertainment lawyer Shaun Miller told The Age that Sandilands could seek to rely on the history of the show and the network's response to previous controversies.
"He could argue that there's a precedent that such behaviour isn't a hanging offence," Miller said, adding that the station has promoted him as a controversial figure because it is "part of his brand value."
Another lawyer with radio industry experience, also quoted by The Age, said that the fact Sandilands "has said worse things in the past could actually be a defence," if that pattern shows similar conduct has been tolerated or rewarded.
At the same time, legal specialists note that key questions will turn on the detailed wording of Sandilands' services agreement and whether the alleged breach is capable of being "remedied" within the 14‑day period set out in ARN's notice to the ASX.
The breakfast show has been taken off air, with interim programming in place in the key Sydney slot.
