Down Under: Kylie & Jackie O To Sign Record Contract

Kyle Sandilands and Jackie Henderson are poised to sign a record, 10-year contract cementing their controversial and sometimes obscene breakfast radio show at KIIS FM, and extending their reach into Melbourne, according to Financial Review.

After a long negotiation process that included skywriting above Sydney, the duo, who host the top-rating Kyle and Jackie O Show, are within weeks of announcing a new deal.

Sources with knowledge of the negotiations, who were not permitted to speak publicly, said the deal between KIIS’ owner, ASX-listed ARN Media, and Sandilands and Henderson would include Melbourne syndication for the first time.

The contract will also include a base salary, shares in the company and a slice of revenue generated, earning them a $200 million deal. Given the increased audience with the addition of Melbourne, sources close to the deal said the pair could earn up to $230 million over the 10 years if they could increase the station’s breakfast ratings and earnings in the Victorian capital.

It is unclear when the pair will be broadcast in Melbourne, but two people with knowledge of the talks said it could be as early as next year. Their existing contract, which expires at the end of next year, is believed to pay each of them about $8 million annually.

Sandilands has made no secret of his desire to enter the Melbourne market. He has said on air “it doesn’t take a genius to realize how much money you would save if we just had the one big show everywhere”.

Their show, which goes for between three and five hours every weekday, is condensed into a 60-minute “hour of power” that is already re-broadcast nationally.

Up to $10 million for each of Sandilands and Henderson over 10 years would be an unprecedented amount and timeframe to lock in radio talent. By that time, Sandilands will be in his early 60s and Henderson in her late 50s.

Sandilands and Henderson have dominated FM radio in Sydney for more than 20 years, first joining forces in 1999 on 2Day FM. They famously defected from Southern Cross Austereo, the owner of 2Day FM, to ARN’s new radio network KIIS FM, in 2014.

KIIS commands 14.7 per cent of Sydney’s breakfast market, reaching 121,000 people at any one time and a cumulative audience of 767,000 over the course of the show, the latest ratings figures show.