ARN Media has intensified its legal battle with former breakfast hosts Kyle Sandilands and Jackie ‘O’ Henderson, launching claims to recover lost advertising revenue, legal costs and millions in bonuses following the collapse of their contracts.
The move marks a significant escalation in a dispute already spanning multiple Federal Court proceedings, with both broadcasters suing the network separately for tens of millions.
According to The Sydney Morning Herald, court documents show that ARN is not only defending claims brought by the duo but is also actively seeking compensation for alleged breaches of their agreements.
The broadcaster argues the pair’s conduct led to measurable financial damage, including lost advertising revenue and profits tied to the KIIS FM breakfast show.
Central to the claim is a clause allowing ARN to claw back a portion of Sandilands’ signing bonus. The company is seeking 87.92 per cent of a $3 million payment made to his company, Quasar Media – a figure totalling $2,637,732.
In parallel, ARN is also attempting to recover legal costs associated with what it describes as the fallout from the contractual dispute.
On-air conduct forms core of defence
ARN’s defence leans heavily on Sandilands’ on-air remarks, which it argues demonstrate a pattern of behaviour underpinning its decision to terminate his contract.
Among the examples cited are comments directed at the current Chief Executive, Michael Stephenson, during a 2025 broadcast.
“Because a lot of these p—ies, they show up, they think they’re in charge,” Sandilands said on June 30.
“Oh, I’m the COO. Whatever that means … No one gives a rat’s ass, dog. And anyway, that bloke will be gone in eight months’ time anyway. Do you know how many COOs I’ve been through? Thousands.”
He continued: “The C-suites … The [expletive] suite. Where do all the [expletives] work! … That’s why they’re called the C-suites.”
The network also points to threatening remarks directed at activist group Mad F—ing Witches, alongside allegations of ongoing bullying toward Henderson, as part of its justification for termination.
ARN CEO Michael Stephenson
Control of content and duty of care contested
A key battleground in the case centres on who held responsibility for on-air conduct.
ARN subsidiary Commonwealth Broadcasting Corporation (CBC) argues Sandilands’ company, Quasar, and Henderson’s company, Henderson Media, were “solely responsible for controlling the manner in which it provides Program Services”.
“Consequently, once any broadcast began, CBC had no ability or power to contemporaneously prevent Mr Sandilands from engaging in bullying or other unwanted conduct towards Ms Henderson,” the company said.
The network further claims Henderson Media was responsible for ensuring her health and safety under the terms of her $9.4 million-a-year contract.
Henderson claims psychological harm
Henderson, who is seeking at least $82 million in damages, alleges her termination amounted to adverse action after she said she could no longer continue working alongside Sandilands.
In a complaint letter sent to ARN and CBC following a February 2026 on-air incident, her legal team outlined claims of sustained workplace harm.
“The simple fact is that our client has been attacked and bullied on live prime time radio,” the letter said.
“There is evidence that she has endured persistent and relentless bullying by Mr Sandilands well before the 20 February 2026 incident, which, despite numerous opportunities, the Group has failed to adequately address both at law and ethically.”
“The consistent and ongoing bullying has left Ms Henderson psychologically unwell and has defamed and humiliated her in a public forum.”
The letter also flagged potential defamation proceedings.
Kyle and Jackie O during the chat, which saw Jackie walk. Source: Instagram
Sandilands argues persona defence
In his own filings, Sandilands maintains that his on-air behaviour aligns with the show’s expectations.
He argues he played the role of the “dominant and abrasive personality” and that his conduct was “congruent” with the “robust character that CBC desired”.
He is seeking $85 million, claiming his termination was invalid and not supported by any act of serious misconduct or breach.
Both matters are scheduled to return to the Federal Court on Friday.