Kyle Sandilands is reportedly considering legal action against the Australian Radio Network (ARN) after being accused of serious misconduct, with his lawyers arguing the network lacks solid grounds to end his employment.

The dispute comes as the long-running Kyle and Jackie O pairing has fractured, with the situation escalating after an on-air argument on February 20 that effectively ended Sandilands and Jackie “O” Henderson’s two-decade radio partnership. The clash began after Henderson read through Andrew Mountbatten-Windsor’s astrology chart following news of his arrest. Sandilands reportedly criticised her “fixation” on astrology, saying it was affecting other parts of the show and claiming colleagues had raised concerns. The exchange turned personal, with Sandilands accusing Henderson of being “off with the fairies” and “almost unworkable”, while Henderson pushed back and said his comments were “unfair”.

In the aftermath, Henderson told executives she “cannot continue to work with Kyle Sandilands”, and KIIS FM moved to end her contract. “Ms Henderson will cease to present the Kyle and Jackie O show,“ ARN announced late Tuesday.

Sandilands, meanwhile, has reportedly been suspended and given 14 days to address workplace behaviour issues or face contract termination. At the same time, he is said to be examining a potentially crucial part of his landmark $100 million contract signed in 2023. Reports suggest the agreement includes wording that ARN accepted liability for what Sandilands says on air — a detail that could complicate any attempt by the network to sack him for misconduct, despite its public accusations.

Sandilands is also reportedly willing to walk away from the contract if he is paid out what he is still owed — a figure that could amount to tens of millions of dollars. Henderson, for her part, has reportedly been offered her own show in a different time slot within the network.

For now, both sides appear to be weighing their next move in what could become one of Australian radio’s most expensive legal disputes.