Australian shock jock wins A$12m payout after radio station tore up contract

Australian shock jock Kyle Sandilands will pocket A$12m ($8.5m; £6.3m) after agreeing to settle a lawsuit against his former employer who cancelled his ten-year A$100m contract early.

Sandilands was sacked from top-rating KIIS FM breakfast programme the Kyle and Jackie O Show in March, after an on-air spat with his co-host Jackie Henderson, who accused him of bullying.

He sued the station's owner ARN Media for wrongful termination and sought to recoup A$85m.

On Wednesday, the company - which had accused Sandilands of serious misconduct - said it had settled the matter and would pay him a cash settlement of A$12.09m, as well as A$1.5m of advertising on its platforms over three years.

Sandilands and Henderson dominated commercial breakfast radio for decades, with the duo's brand of crude humour attracting high ratings, notably in Sydney.

But that came to an abrupt end after a seven-minute tirade by Sandilands on 20 February, in which he accused Henderson of being "off with the fairies" and not pulling her weight at work.

Sandilands said his co-host's recent interest in astrology and horoscopes had affected her ability to do her job, but refused to provide examples when Henderson asked through tears.

In a statement on Wednesday, ARN said the settlement "provides for the full and final resolution of all claims and counterclaims between the parties".

As part of the deal, Sandilands can not work for any competitors of ARN until next March.

ARN also added that Sandilands was pursuing "independent media opportunities" and that it would get a 19.9% cut of his next venture for three years.

Henderson is also suing ARN after the cancellation of her ten-year A$100m contract. It is understood her court action is ongoing.

Henderson, who worked with Sandilands for about 27 years, took a leave of absence following the duo's on-air clash. ARN announced she had told them she "cannot continue to work" with Sandilands, and the show was taken off air.

Sandilands said he had apologised to his co-host shortly after their argument but was banned from calling her or any of the show's staff in the days and weeks following, hampering his efforts to resolve the situation.

He had also offered to work with another presenter if Henderson didn't want to, he said, but ARN "weren't interested".

After the show was initially taken off air, local media reported that staff at ARN had celebrated the show's demise, as the pricey contracts for its stars had led to other experienced staff being fired.

Observers also pointed to a failed attempt to expand the Sydney programme to Melbourne as a possible reason why ARN wanted to end the show.