Kyle Sandilands closes in on $15m settlement with KIIS FM owner

Kyle Sandilands is closing in on a settlement agreement with his former employer, KIIS network owner ARN media, worth up to $15 million, as part of a deal that would bring to an end one of two high-profile legal battles involving the company and avert a blockbuster trial.

Under the agreement, should it be reached as expected, ARN would pay Sandilands up to $5 million a year over three years, according to one person briefed on the negotiations, speaking on the condition of anonymity to discuss confidential information.

That amount is far less than the $85 million Sandilands had previously sought from the embattled radio network, but leaves unresolved parallel litigation launched by his former co-host Jackie “O” Henderson against the station. The pair had been employed on contracts worth $200 million over a decade.

The settlement negotiations advanced late last week, as this masthead first foreshadowed on Monday, leaving those close to both parties confident that an agreement could be reached as early as this week. ARN declined to comment, while Sandilands’ representatives were contacted for comment.

Under the pending deal, ARN would support Sandilands’ plans for a live online show, which would free him from the oversight of the traditional broadcast media authority that has repeatedly taken aim at his profane broadcasts. It is not clear what form ARN’s support would take.

ARN terminated Sandilands’ contract in mid-March, following the expiry of a two-week deadline it had set for the controversial broadcaster to fix his “serious misconduct” against Henderson, after the pair had an on-air bust-up in February which reduced her to tears. Henderson has launched separate legal action against the company. Her agent was contacted for comment.

In legal documents to launch his court claim in March, Sandilands’ lawyers wrote that the exchange was “congruent with the style, tone and nature of the show and the robust character” his employer desired.

Sandilands, as a result, argued the termination was invalid because he did not commit a serious misconduct or breach. His lawyers argued that if there was a breach, he had no reasonable opportunity to “remedy” it, given Henderson’s contract had already been terminated.

In late March, Sandilands’ lawyers argued for an expedited hearing to try to get the controversial shock jock back on air as soon as possible, but were unsuccessful.

Sandilands had previously said he was 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.

The settlement agreement, should it be reached in the coming days, would allow Sandilands to go public with his plans for a new online subscription show with the working title Kyle Sandilands Live. The plans for the new show, revealed by this masthead on Monday, involve a number of former staff from The Kyle and Jackie O Show and will be “uncensored”.

It will be marketed as a 6am breakfast product, according to one person familiar with the plans, which will pit the show against Sandilands’ former employer. The timing of the plans remains subject to Sandilands’ settlement negotiations with ARN.

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