KIIS expected me to berate Henderson, Sandilands tells court

Controversial broadcaster Kyle Sandilands has told the Federal Court that his blowup at Jackie “O” Henderson was exactly what the KIIS radio network paid him for as he fights its decision to terminate his $100 million contract.

In legal documents to launch his court claim on Monday, Sandilands’ lawyers also revealed the radio and television personality receives a $120,000 annual allowance for flights, $500,000 in advertising for his products and a $7.4 million base salary, along with other benefits.

Sandilands berated Henderson on air to the point of tears on February 20 over her passion for astrology, accusing her of being distracted at work and leading her to take time off air, which culminated in her lawyers allegedly telling station owners ARN she could not work with her co-host.

But in the court filing, Sandilands’ lawyers wrote: “The exchange was congruent with the style, tone and nature of the Show and the robust character that [ARN] ‘desired’.”

As a result, Sandilands claimed the termination of his contract by ARN last week was “invalid” because he committed no serious misconduct or breach. If there was a breach, he had no reasonable opportunity to “remedy” it as Henderson’s contract had already been terminated, Sandilands lawyers argued.

Sandilands’ lawyers filed the proceedings in the Federal Court against ARN and its subsidiary, Commonwealth Broadcasting Corporation, which is the licence holder for KIIS in Sydney, on Friday and want the court to either restore the contract or force ARN to pay out the broadcaster in full.

He says he is still owed upwards of $85 million as part of the deal agreed in 2023, which also included a $200,000 consultancy fee among a series of clauses. His contract also entitled him to sublicencing fees to his company Quasar Media, worth $2 million annually, according to the statement of claim.

ARN notified the ASX of the development on Monday morning and said the documents were filed after markets closed last week. Sandilands’ contract was torn up by ARN last week following an on-air feud between him and his co-star Jackie “O” Henderson, which the company said amounted to “serious misconduct” by him.

But Sandilands says the termination was “unconscionable under the Australian Consumer Law”.

Sandilands’ claim also reveals further details about the duo’s contracts with ARN, arguing they permitted a show that was occasionally “confrontational”.

“It was high-energy and controversial, involving the broadcast of (amongst other things) material that was irreverent and deliberately provocative, including using crude humour, ribald commentary and sexual innuendo.

“Banter and tension between Mr Sandilands and Ms Henderson was a central dynamic to the show. Mr Sandilands generally performed the role of the dominant and abrasive personality who was deliberately outrageous and often offensive, whilst Ms Henderson played a moderating role as a warmer and more emotionally attuned character,” the statement of claim continues.

The document was prepared by Sandilands’ barristers Philip Boncardo and Scott Robertson, SC.

ARN disputes Sandilands’ claims and intends to defend its position in court proceedings, it told the share market, but could not reliably estimate the outcome or any potential financial impact.

Henderson and her camp have remained silent and have not filed any legal proceedings, despite her contract being torn up two weeks before Sandilands’.

Her contract was initially terminated after her management and legal representatives informed the company she could no longer work with Sandilands, a source with knowledge of the communications, not authorised to speak publicly due to the sensitivity of the matter, said.

How the court views either termination will determine the financial future of ARN, which signed the duo to a 10-year, $200 million contract in mid-2023.

ARN’s share price fell a further 4.5 per cent on Monday, closing the day with a valuation of less than $100 million for the first time in its history.

Since 2023, the ARN share price has fallen by almost 70 per cent, with profits and revenue also declining significantly. The show’s poor performance in its nearly two years in Melbourne, alongside an activist campaign that led to advertisers abandoning the show, contributed to a decision to pause the national rollout into Adelaide and Brisbane.

Then last week, media regulator the Australian Communications and Media Authority imposed new licence conditions on KIIS in Melbourne and Sydney, banning overtly sexual content on any shows hosted by Sandilands and/or Henderson for five years on the ARN network.

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