Sources have confirmed to Mediaweek that ARN Media has reached a settlement with Kyle Sandilands, agreeing to pay him $5 million a year over three years.
The $15 million settlement is significantly less than the $80 million reportedly remaining on Sandilands’ contract when ARN tore it up.
ARN Chairman Hamish McLennan is reported to have led negotiations with Sandilands and his legal team over the past week to finalise terms and avoid a costly and public federal court trial.
A $100 million deal gone wrong
In November 2023, Sandilands and co-host Jackie Henderson each signed 10-year contracts with ARN valued at $100 million, extending their tenure on KIIS FM through to the end of 2034.
The deal was intended to lock in the duo behind The Kyle and Jackie O Show – a program the pair had hosted together for more than 20 years, consistently dominating Sydney FM radio ratings.
Within a year, the arrangement had unravelled. A campaign by activist group Mad F—ing Witches, an advertising slowdown, and a failed expansion into Melbourne are reported to have weighed on ARN’s share price.
In May, new CEO Michael Stephen admitted that advertiser concerns linked to the show contributed to $26.4 million in lost metro and regional revenue during FY25.
It was, at the time, an extraordinary admission, given that the company were paying Sandilands and Henderson a combined $20 million each year.
The working relationship between Sandilands and Henderson also broke down, with Henderson leaving the studio before informing ARN she could no longer work with Sandilands.
ARN subsequently terminated both contracts, triggering legal action in the federal court.
If the reported settlement is formally signed, it would bring to a close the action Sandilands has brought against ARN.
However, ARN would still face a separate unfair dismissal complaint from Henderson, which remains before the court.
Main image: Kyle Sandilands. Source: Nine