Kyle and Jackie O sign mega 10 year deal and announce Melbourne launch

The ARN duo have signed the longest radio deal in Australian history, worth potentially more than $200m - including a new revenue share arrangement - and will launch into Melbourne.

KIIS FM hosts Kyle Sandilands and Jackie O Henderson.

KIIS 1065’s Kyle and Jackie O have signed on to host their radio show for another decade in a deal worth potentially more than $200m.

The duo’s top-rating breakfast show will also launch live into the Melbourne market on KIIS 101.1 next year, as part of a “multi-layered contract” which involves new revenue share arrangements and a $7m package of shares for each host, with the shares vesting at the end of their contract, in 2034.

While the current remuneration details for the pair are not public, they are rumoured to be paid about $8m per year.

Their new annual pay packets are not explicitly set out by ARN Media, but factoring in increases and revenue share, and multiplied over the next decade, the figure is expected to be north of $200m.

“The new multi-layered contracts are designed to create full alignment with ARN Media and incentivise and reward superior performance and include base fees, revenue share on incremental growth and sign-on bonuses predominantly comprised of shares in ARN Media,’’ the company said on Wednesday.

“The total base fee increases under these new contract arrangements, which take effect from January 2025, will be offset by lower content costs resulting in part from the live broadcast of the Kyle and Jackie O Show into Melbourne, and will be limited to a net total increase of approximately $2m-3m per annum.’’

Kyle Sandilands, Jackie Henderson and Christian O’Connell, who hosts the evening show at Gold 1043 in Melbourne, and who signed on for a five year deal to 2029, will each be issued $7m worth of ARN media shares as part of the deal, with the shares vesting at the end of their contract terms.

ARN will also spend another $2m-$3m per year over the next two to three years on marketing to launch the Kyle And Jackie O show into Melbourne.

ARN media chairman Hamish McLennan said the unique compensation structure “will incentivise them to focus not just on ratings but also to drive commercial success’’.

“We believe this compensation structure sets the foundations for the next chapter in ARN Media’s evolution as an audio business, aligning the objectives of our key talent with that of the company, and creating a platform for incremental revenue growth and improved shareholder returns over the medium term.’’

Kyle Sandilands said, “Love us or loathe us, Jackie and I will be continuing with our politically incorrect nonsense for a long, long time’’.

“Speaking of 10 years… 10 years ago the ‘other’ network we were once at told Jackie and I that we were past our used by date and no longer relevant. So that’s a fun little observation that’s worth mentioning on such a momentous day. Cheers to ARN for the great partnership and to the future goals we’ll continue kicking together.”

Jackie O said: “When I was 18 years old, I rang a radio station, and never did I dream in that sliding doors moment that I would find something that has become the love of my life and would lead me to this phenomenal career and historic deal’’.

“I feel so grateful for our incredible listeners who have gone through life with us and will continue to do so for the next 10 years.

“It’s an honour to broadcast to Melbourne again after so many years, and to welcome them back to our craziness is really exciting. After 23 years of broadcasting with Kyle, I still pinch myself that our show continues to grow in ratings and in reach.’’

The expansion of the Kyle and Jackie O show to Melbourne means KIIS 101.1’s Jase & Lauren will not be returning next year.

Chemist Warehouse has signed on to expand its current alignment with the brand and will be the foundation partner for the show’s first year in Melbourne.