‘Unconscionable’: Sandilands takes termination fight to court in major filing

Controversial broadcaster Kyle Sandilands has filed a legal challenge to ARN’s termination of the remainder of his 10-year, $100 million contract, claiming the decision was invalid because he had not breached his obligations.

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.

ARN notified the ASX of the development on Monday morning and said that 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.

Sandilands claims the termination of his contract is “invalid” on the grounds that there was no act of serious misconduct or breach of contract, according to the release. “The termination was unconscionable under the Australian Consumer Law,” the document also states.

“The applicants seek an order for specific performance of two contracts, payment of whatever amounts are due and payable under the contracts at the time of judgment, and damages,” the release said.

ARN disputes these claims and intends to defend its position in court proceedings, it said.

“Given the early stage of the matter, ARN is unable to 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, should Henderson also file proceedings, will determine the financial future of ARN, which signed the duo to a 10-year, $200 million contract in mid-2023. As of Monday morning, ARN is worth just $103 million.

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.

Sandilands claimed last week that his criticism of Henderson on February 20, which reduced her to tears, was no different from many other arguments the pair have had over 27 years working together and was used as a pretext by radio network ARN to tear up their contracts.

He was given two weeks to “remedy” the alleged serious misconduct, but was sacked moments after the deadline passed.

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