Talks of media personality Karl Stefanovic replacing shock jock Kyle Sandilands emerged during Federal Court hearings as ARN faced scrutiny over a high-profile on-air bust-up with co-host Jackie Henderson. According to court documents and barrister Vanja Bulut, ARN executives discussed bringing in Stefanovic after Henderson expressed she could no longer work with Sandilands following the February incident.
Federal Court Hears Internal ARN Emails and Bullying Claims
Internal emails read aloud during a Federal Court hearing on Friday revealed that an ARN executive labeled the February on-air clash as “not OK” and cited “serious bullying and harassment in the workplace” while the program was still live on air, according to barrister Vanja Bulut. The email exchange reportedly questioned why no one stepped in sooner to stop the exchange between Sandilands and Henderson.
Court documents show that during the broadcast, Sandilands told Henderson she was “off with the fairies” while criticizing her interest in astrology. Both shock jocks subsequently had their 10-year contracts terminated by the network. Henderson’s Federal Court lawsuit against ARN and its subsidiary, the Commonwealth Broadcasting Corporation (CBC), alleges unlawful dismissal after she stated she could no longer continue working alongside Sandilands on the Kyle and Jackie O Show at KIIS FM.
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Karl Stefanovic was floated as a potential breakfast show co-host for Henderson during executive discussions, though she was ultimately offered an afternoon show with a $2m annual contract, which she refused.
Legal Defense and Disputed Workplace Complaints
ARN is actively defending the Federal Court claim, arguing that Henderson’s initial bullying complaint was not made in line with workplace law. Court disclosures revealed that Henderson had previously arranged for exorcists to clear Sandilands’ “demons” following a bullying complaint made in September 2025. ARN and CBC argue in an interlocutory application that Henderson withdrew that earlier complaint because she believed the issue had been resolved through the spiritual intervention, questioning whether that constituted a rational basis for dropping the matter.
Alternatively, ARN’s legal defense suggests that if Henderson still harbored concerns about her co-host’s behavior but chose not to voice them, she knowingly accepted the risk while informing the network that no further action was required. Furthermore, the radio giant contends that if the bullying allegations are legally established, any resulting pain, suffering, and distress were caused by failures within Henderson’s own company, Henderson Media, to adequately ensure her health and safety.
Executive Liability and Subsequent Settlements
Testimony in the Federal Court also examined how ARN executives managed the fallout from the complaints. When Henderson’s manager reached out to discuss the alleged bullying, internal communications between ARN executives indicated a need to carefully manage legal liability in their response. A draft reply stated the company took the incident “extremely seriously,” though barrister Vanja Bulut claimed that ARN chief executive Michael Stephenson recommended removing the word “extremely.”
Kyle Sandilands has successfully settled his separate lawsuit with his former employer in a deal worth $12.09m over three years, according to court disclosures.
Frequently Asked Questions
Why did Kyle Sandilands and Jackie Henderson lose their contracts?
Both shock jocks had their 10-year contracts torn up following an on-air clash in February where Sandilands criticized Henderson’s interest in astrology and told her she was “off with the fairies.”
What is Jackie Henderson alleging in her lawsuit?
Henderson alleges in her Federal Court lawsuit against ARN and CBC that she was unlawfully dismissed after stating she could no longer work alongside Sandilands.
When is the trial scheduled?
The Federal Court lawsuit brought by Henderson is scheduled to go to trial in October.
Did Karl Stefanovic take over the radio slot?
No. While ARN discussed the possibility of Stefanovic co-hosting a breakfast program with Henderson, she was instead offered an afternoon show with a $2m annual contract, which she turned down.
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