Merit Street Media, the joint venture (JV) led by television personality Dr. Phil McGraw, filed for Chapter 11 bankruptcy protection on Wednesday in the United States Bankruptcy Court for the Northern District of Texas. Simultaneously, the company launched a lawsuit against its business partner, Trinity Broadcasting Network (TBN), alleging breach of contract that Merit Street claims sabotaged its fledgling television network and forced it into financial ruin.
Merit Street Media, a partnership between McGraw’s Peteski Productions and TBN, was established to create a new platform for Dr. Phil’s programming, including original episodes and primetime specials. The venture, launched in April 2024, aimed to deliver cutting-edge reports, interviews, and in-depth analysis to a national audience. However, according to the lawsuit, TBN’s failure to honor critical commitments derailed the network’s potential, pushing it toward collapse.
The lawsuit details a “simple and straightforward” agreement: Peteski Productions would provide content, including new episodes of the Dr. Phil show, which ended its 21-year daytime run in 2023 but continued in syndication, and primetime specials. In return, TBN, founded by televangelist Paul Crouch in 1973 and now led by CEO Matthew Crouch, agreed to provide nationwide distribution through its carriage agreements at no cost to Merit Street. TBN also committed to delivering “first-class quality” production services and would hold a controlling equity interest in the network.
Merit Street alleges that TBN reneged on these promises shortly after the JV’s formation. The lawsuit accuses TBN of abusing its position as the controlling shareholder to prioritize its own interests and those of Matthew Crouch, forcing Merit Street to assume TBN’s obligations under the agreement. The suit further claims TBN refused to transfer its “must-carry” rights, a critical component for national distribution, effectively leaving Merit Street without a platform to broadcast its programming. “As a result of TBN’s conduct, Merit Street has nowhere to send its broadcast signal and nowhere to air its programming, no matter how great it may be,” the filing states.
The impact of TBN’s alleged actions has been devastating, according to Merit Street. The network, which gained attention for high-profile content like McGraw’s interview with former President Donald Trump following his New York state conviction and an embed with federal immigration agents in January 2025, is now on the brink of going dark. Merit Street stated it will continue airing library programming for as long as possible but faces an uncertain future.
The bankruptcy filing estimates Merit Street’s assets and liabilities in the range of $100-$500 million, with 200-999 creditors, including major distributors like DirecTV and Nexstar, as well as ratings agency Nielsen. The lawsuit seeks damages, recoupment of legal costs, and other remedies to address the financial and operational harm caused by TBN’s alleged misconduct.
A spokesperson for Merit Street told Deadline, “Trinity Broadcasting Network is being sued by Merit Street Media for failing to provide clearly agreed-upon national distribution and other significant foundational commitments critical to the network’s continuing success and viability. The suit is part of a restructuring proceeding also initiated by MSM.” TBN did not immediately respond to requests for comment.
The collapse of Merit Street Media marks a significant setback for McGraw, whose Dr. Phil show was a daytime television staple for over two decades. The lawsuit paints a picture of a promising venture undermined by a partner’s deliberate actions, accusing TBN of making “a conscious, intentional pattern of choices” that sabotaged a network poised to become a fresh voice in national media.
As the legal battle unfolds, Merit Street’s future hangs in the balance, with its ability to broadcast and fulfill its mission in jeopardy. The case highlights the high stakes of media partnerships and the challenges of launching a new network in a competitive landscape.
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