The radio network that terminated the contracts of Kyle Sandilands and Jackie 'O' Henderson experienced a $22 million drop in revenue last year, attributed to advertisers withdrawing their spending due to brand safety apprehensions. ARN CEO Michael Stephenson disclosed these financial setbacks during the company's annual general meeting on Thursday, where inquiries regarding the departure of the network's foremost talents were dismissed.
'During the year… metro radio revenues declined by $28m,' Mr Stephenson informed shareholders. '$6m can be attributed to a tough advertising market, the remaining $22m is related to clients who had chosen not to advertise with ARN because of issues relating to brand safety. Over time, we expect a significant percentage of the $26m of revenue that was lost last year because of brand safety concerns to return… improving both our metro radio revenue and revenue share.'
ARN chairman Hamish McLennan used his opening address to briefly outline the collapse of The Kyle & Jackie O Show on KIIS 106.5, which dramatically imploded in February. Mr McLennan then stated that as the matter is now before the Federal Court, he would not offer further comment. Sandilands and Henderson are each suing ARN for more than $80 million remaining on their contracts, while the radio network has launched cross claims against both of them.
Several shareholders posed questions related to Sandilands and Henderson's departure but were again told the court case was off-limits. Mr McLennan did address a question from shareholder activist Stephen Mayne, who asked the chairman if he had personally signed the pair's 10-year contracts, worth a combined $200 million. 'The actual contracts weren't signed by me but I did sign a document that showed our commitment to rejoining,' Mr McLennan said. 'They were the biggest radio talent that we had at the time. They were responsible for a lot of revenue coming through the door. We threw everything at that contract.' When asked a follow-up question from Mayne about Sandilands and Henderson, Mr McLennan said: 'I'm not talking about Kyle and Jackie O. I think I made that clear before.' Another shareholder suggested the ARN board had provided 'scant' information about the Federal Court case but Mr McLennan said he could not discuss it.
Sandilands' contract was terminated in February following an on-air argument with his co-host, when he slammed her 'fixation' on astrology and then mocked her for crying. ARN claims Sandilands engaged in serious misconduct in his treatment of Henderson and radio staff, and pointed to a range of instances where Sandilands made disparaging comments about his colleagues. Henderson's contract was terminated when she refused to work with her co-host.
Sandilands claims the radio giant wanted him to have a 'dominant and abrasive personality' while presenting The Kyle and Jackie O Show, which he says meant his conduct was reasonable. His contract included behavioural clauses, warning he could be terminated immediately if there was 'serious and imminent risk to the health and safety of a person'. The contract allowed ARN to suspend Sandilands for up to one month over alleged serious misconduct, but required the company to keep paying his fee and benefits during the suspension. The deal also gave him the power to decide on the hiring or firing of key show staff - including the executive producer, newsreader, producers and content director.
While ARN claimed Sandilands engaged in serious misconduct in the way he spoke to and about Henderson and his colleagues, his contract specifically stated ARN wanted him to 'present in the robust character desired by the company'. ARN acknowledged the 'tone, style, voice and robust character' Sandilands used during broadcasts, and said it would 'exercise its responsibilities to provide censorship, review and guidance in this' to help him do that. At the same time, the contract said Sandilands was solely responsible for controlling the manner in which he presented the show. It also said Sandilands could not be held in breach of his contract over on-air content unless strict conditions were met, including proof he had actual knowledge it was likely to breach the agreement.
Sandilands has admitted he regrets what he said to Henderson in the February 20 confrontation which ended the pair's 25-year broadcasting partnership. Henderson and Sandilands had been discussing Andrew Mountbatten-Windsor when she read out the disgraced royal's birth chart. He lambasted his co-star, claiming her love for astrology was affecting her work. As Henderson protested, Sandilands continued: 'It's affecting other things, like your fixation on this has made you almost unworkable. You're off with the fairies with this s*t. It's mental.' Henderson then said she was offended by Sandilands' comments. 'I am, Kyle,' she said. 'I totally am offended by you saying something like that.' Sandilands responded: 'Well, too bad if you are because that's the reality of what we're dealing with here. It's affecting everything else. You're too fixated on it.' Henderson became audibly emotional, fighting back tears as she continued to defend herself. 'I would never say things like that about you,' she said. 'It's a total attack, it really is… to say: 'You don't know what the F is going on, you're not doing your job,' that's an attack and I wouldn't do that.'
Henderson claims her radio bosses knew about Sandilands' alleged bullying and that the Fair Work Act was breached when they failed to ensure she was provided with a safe workspace. Defence documents lodged by ARN say Sandilands often made 'offensive and degrading' comments to Henderson, but the broadcaster had 'no ability or powers' to stop him. Henderson and Sandilands signed their contracts using their respective businesses, Henderson Media and Quasar. ARN claims those businesses were responsible for the welfare and conduct of the co-hosts, rather than the broadcaster. The radio giant's defence also referred to a complaint from Henderson's lawyers about Sandilands in the days following the February argument, stating she would not return to work until she was given an alternative radio show. To ARN, that meant Henderson did not intend to return to work if there was no alternative show. ARN said it did not propose an alternative show because there was no obligation to do so. Both matters have been set down for hearing on October 12.
