Kyle Sandilands and Jackie 'O' Henderson's former content director Craig Bruce tells of contract 'insanity'
Kyle Sandilands and Jackie "O'' Henderson were once close friends. (Instagram: @jackieo_official)
Vulgar, sexually explicit and deeply offensive was how the media regulator once described the Kyle and Jackie O Show.
It's doubtful the commercial radio executives would have been too worried about a slap from ACMA when a show is raking in the ratings, and advertising dollars.
But Kyle and Jackie O weren't anymore, at least in Melbourne, where the Sydney-based program floundered, sinking to 5 per cent of audience share.
That would have rung alarm bells at parent company ARN Media, which reportedly signed the pair to a $200 million, 10-year deal in 2023.
That deal was a bridge too far, according to a man who had a hand in their early success at 2DayFM, their former content director Craig Bruce.
"The idea that radio could generate enough revenue in eight to 10 years from now to pay two people $10 million each a year was insanity and should never have happened," Mr Bruce told 7.30.
Craig Bruce has had a long history in Australian radio. (Supplied)
"The revenue in Melbourne was just in a terrible position, and that's due largely to the launch of the show, which was poor.
"A Sydney breakfast show going into Melbourne is difficult at the best of times, but Kyle and Jackie really didn't make a lot of effort to connect with the Melbourne market.
"Then the content was explicit on far too many occasions. It was impossible to listen to with kids in the car. It was just unsafe in lots of ways, and so I don't think they were ever coming back from the Melbourne ratings."
Mr Bruce was content director at the Austereo network in 2005 when he helped elevate the pair of Kyle Sandilands and Jackie "O" Henderson, after she split with previous on-air partner and husband "Ugly" Phil O'Neil.
The pair attended several events together, including the 2003 ARIA Awards. (AAP Image/Mick Tsikas)
Mr Bruce was involved with them until 2013 and said that in their heyday, the pair were "killers" aligned in their goals.
"They just wanted to win," he recalled.
"They were just so focused and so disciplined.
"They really cared for each other. They were great friends. We did a lot of planning for the show at Kyle's house. It was fun."
Bust-up a 'long time coming'
This week ARN Media took the show off the air, saying that Sandilands had breached his contract for "serious misconduct".
Kyle and Jackie O have broadcast from many locations over the years, including at the Sydney Royal Easter Show in 2009. (AAP Image/Tracey Nearmy)
A statement to the ASX from ARN Media said that Henderson had "given notice she could not continue to work with Sandilands".
It followed an on-air tirade by Sandilands against Jackie O on February 20 when she was talking about Andrew Mountbatten-Windsor's birth chart.
Mr Bruce, who had spoken to Sandilands since the on-air incident, said the tension was likely building for some time.
"The conversation that we heard that went sideways on the air was probably a valid conversation handled poorly, and it should have been handled off the air," he told 7.30.
"Twenty-five years is a long time in a small room together, and the pressure of doing breakfast radio is immense.
"This has been a long time coming … it's not a single moment.
"It's not about the argument that some of us heard from the show on Friday a week ago. It's more a combination of a bunch of things that have happened over time, and two people growing older and growing apart."
Trouble for ARN Media
Some observers, such as veteran broadcaster Steve Price, believe the bust-up is a convenient way for ARN Media to try to terminate the $200-million agreement.
The Kyle and Jackie O Show was pulled off the air after Henderson said she would no longer work with her co-host. (Facebook: The Kyle and Jackie O Show)
ARN Media has argued that Sandilands' actions mean he is in breach of the contract, and, when approached for further comment, pointed to 7.30 to their ASX statement.
"It was always ridiculous," Price told 7.30 of the deal.
"The share price today has gone up with the news that these contracts might be torn up. It was always too much money.
"They didn't need to pay them that much, and it was done because they thought that they could network this show around the country.
"They were going to put it into Brisbane. That never happened."
Price speculated that all the pressure is now on Sandilands — who has been in trouble many times throughout his career for on-air comments — as ARN has reportedly offered Henderson the opportunity of another show.
"I think once they realised that, they've decided to put their weight behind [Jackie O] and they've put the pressure on Kyle because what I think the board wants and what the new CEO of ARN wants is to be able to tear this contract up and start again," Price said.
"Now, does that mean Kyle Sandilands survives at that network? Probably doubtful, but if he does, he won't be making $10 million a year. He'll be lucky to make one."
Mr Bruce said the matter would likely get ugly before it was resolved.
"Many would argue that there's been plenty of moments of misconduct along the way on the show over the last umpteen years that haven't been picked up,"he said.
"And I think Kyle would have a position to say, 'Well, this has happened before. Why now?'
"I think it's going to get ugly before anything is resolved, certainly in the case of Kyle. And I feel like Jackie has made a decision to leave the environment altogether."
Price agreed with the assessment.
Steve Price says the pair's contract was "always ridiculous".
"Kyle will then arm himself up with lawyers, and he can afford to do it, and argue that what he'd said to Jackie O that caused this latest disruption is no worse than the things he said in the past," he said.
Last month, ARN Media reported a 10 per cent fall in revenue, or about $30 million.
"No-one particularly asked them and they didn't state why, but to a large extent, I would say it is because of the Kyle and Jackie O Show," veteran media analyst with Pearman Media, Steve Allen told 7.30.
ARN Media now has to fill a huge hole in its breakfast programming in Sydney and Melbourne, and it remains to be seen whether it will be able to replace one of Australia's only internationally recognised radio duos.
"Australian radio will never be the same again,"Mr Bruce said.
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