ARN needs to decide if Kyle and Jackie O are worth $200m
Radio stars Kyle Sandilands and Jackie O are reportedly looking for $200 million — $10 million a year, each, for ten years — or they will walk from KIIS FM, the station they have kept at the top of the FM radio ratings for close to a decade.
Such a deal will effectively double the salaries of the pair, who — at $5 million a year — are currently Australian radio’s highest-paid broadcasters.
For comparison’s sake, 2GB Mornings host Ray Hadley reportedly earns $3.5 million a year, while WSFM’s Amanda Keller apparently brings in $2.5 million.
A better comparison would be between Kyle and Jackie O, and the rest of the FM breakfast contenders. The show currently pulls in around 14% of the Sydney audience (although it passed the 17% mark earlier this year), and has been the number one FM show in the time slot since 2005.
The pair still have 15 months to run on their contracts, but have made no qualms about feeling undervalued.
“We make them hundreds of millions of dollars and they barely even recognise our existence,” Sandilands ranted on-air in 2021, after first warning that “one day, we’re just going to not be there.” In July, reports emerged the Kyle and Jackie were in talks with SCA, who, the AFR said, has been “pretty aggressive” in their pursuit of the pair.
Last time Kyle and Jackie O felt undervalued was in 2013, when they sensationally jumped from 2Day FM to launch the newly-created KIIS FM.
Their new show immediately debuted at #1 (albeit tied with WSFM) in the first survey for 2014, while 2Day crashed from first to fourth. Kyle and Jackie O moved KIIS 1065’s breakfast ratings from a 3.3% to a 9.3%, while 2Day dropped from 10.4% to 3.8%.
The impact of this trade hit the overall station share neatly: KIIS jumped to 8.4% market share (from 5%), while 2Day fell from 8.4% down to 4%.
This was ten years ago, and their stature in radio has only grown.
It seems the only way Kyle and Jackie won’t get the $200 million is if another network decides to pay more.
Got a tip?
Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
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Hopefully walk out of our lives, collectively, for good.
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@drew – walk where? SCA ain’t paying them $20M a year either.
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Interesting that ARN quite recently purchased 14.9% of SCA, the allowable % down to the decimal point.
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If they’re weighing up between ARN and SCA the clear choice is SCA… The reason in being what LiSTNR could provide them, in addition to a nationally broadcast show through a larger metro + regional national network. The audience potential is better with SCA, especially while digital audio continues to evolve at the current rate.
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Absolutely 100% not worth it. Kyle and Jackie O’s toilet humour and innuendo has run it’s course. I refuse to listen to KIIS because of them specifically. You can’t have it on when the kids are in the car as they are often too inappropriate.
I’d be happy if I never heard them again. Time for some new blood!
#timetoretire
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They will get the money – because they can prove they earn that much money and more for the station bosses. Money talks, or they walk. It’s simple.
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ARN would be crazy to pay this duo $10m each. The ARN network as a whole makes only just over $300m a year in revenue across 58 stations. Are we really to think that one show in radio’s second largest market is worth around 6.5% of the company’s entire revenue, before costs such as payroll, broadcasting expenses, royalties and everything else is factored in? Give me a break.
In late 2013 when they made their move, ARN shares were worth around $1.80. Now they trade at $0.82. Have shareholders made the hundreds of millions Kyle boasts about? I don’t think so.
It’s not clear SCA even has the ability to pay for this couple. They may find themselves with nowhere to go.
Let them walk if they must. Develop some new talent.
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As in they want $200 Mill as a flat rate or is that flat rate and forecasted rev share for the ad dollars they bring in?
If they are so sure they can bring the advertising dollars in then good luck to them and I hope they can get a good deal. But if it’s a flat fee then I hope SCA & ARN put a few clauses in the contracts to protect their networks.
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Not necessarily. While SCA has a larger broadcast radio footprint, ARN’s has grown since their acquisition of Grant Broadcasters, and the show is sold to the 2SM CHR network. But globally, ARN has the advantage via iHeartRadio. My guess is for the $200m, they’ll have to make some bespoke on-demand content and work more on sponsorships.
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I disagree. ARN are going from strength to strength, they even bought shares in SCA. I heart radio is bigger than Listnr and now ARN has regional radio stations it will continue to grow. Kyle knows who to back so he will stay with ARN.
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