Dr. Phil McGraw’s Merit Street Media filed for Chapter 11 bankruptcy Wednesday while simultaneously suing Christian business partner Trinity Broadcasting Network for breach of contract, claiming the evangelical broadcaster destroyed the fledgling television network and forced it into financial collapse.
Merit Street Media, launched in April 2024 as a joint venture between McGraw’s Peteski Productions and Trinity Broadcasting Network, cited a “severely strained liquidity position” and failure to secure additional outside capital as reasons for the bankruptcy declaration in U.S. Bankruptcy Court for the Northern District of Texas.
The company estimated its assets and liabilities each in the $100-$500 million range, with creditors numbering between 200-999, including major distributors like DirecTV and Nexstar, as well as ratings agency Nielsen.
“Trinity Broadcasting Network (TBN) is being sued by Merit Street Media (MSM) for failing to provide clearly agreed-upon national distribution and other significant foundational commitments critical to the network’s continuing success and viability,” a Merit Street spokesperson said. “The suit is part of a restructuring proceeding also initiated by MSM.”
The joint venture was structured as a content-for-distribution deal. Under the agreement, McGraw’s Peteski Productions was to provide Merit Street with new original episodes of the Dr. Phil show and primetime specials, while Trinity Broadcasting agreed to provide nationwide distribution at no cost to Merit Street in exchange for a controlling equity interest in the network.
“The JV called for Peteski to provide Merit Street with certain new original episodes of the Dr. Phil show, as well as primetime specials to air on the new TV network. For its part, TBN agreed to provide, at no cost to Merit Street, carriage to distribute Dr. Phil’s shows and specials to a nationwide audience … in exchange for which TBN would have a controlling equity interest in the network,” according to the lawsuit.
Trinity Broadcasting committed to providing all “first class quality” services necessary to produce Dr. Phil’s shows and primetime specials.
“In short, the deal was simple and straightforward — McGraw/Peteski contributed content, while TBN contributed access to a distribution network to air Dr. Phil’s content along with the production services to support the creation of that content,” the lawsuit states.
However, Merit Street alleges that Trinity Broadcasting quickly reneged on its commitments after the joint venture was formed. The lawsuit claims TBN “began to abuse its power as a controlling shareholder to advance its own interests and those of its CEO Matthew Crouch, while causing Merit Street to assume responsibility of TBN’s obligations under the Joint Venture Agreement, and to otherwise enrich itself at Merit Street’s expense.”
The lawsuit accuses Trinity Broadcasting of engaging in “a conscious, intentional pattern of choices made with full awareness that the consequence of which was to sabotage and seal the fate of a new but already nationally acclaimed network which has, since its launch in April of 2024, delivered its viewers with cutting edge reports, interviews, and in-depth analysis of national importance.”
The lawsuit alleges that Trinity Broadcasting refused to honor its commitment to transfer must-carry rights and provide national distribution for Merit Street.
“This fresh voice on the national stage is inexorably going dark, going off the air because TBN has refused to honor its commitment to transfer its must carry rights and thereby provide national distribution for the network—Merit Street,” the lawsuit states.
Trinity Broadcasting Network was founded by American televangelists Paul and Jan Crouch in 1973 and is currently overseen by President and CEO Matthew Crouch. The network has an over-the-air broadcast television as well as multichannel platforms and streaming services.
Merit Street’s financial troubles extend beyond the Trinity Broadcasting dispute. The company also faces ongoing legal issues with the Professional Bull Riders organization. Merit Street bought the rights to air PBR events on its Merit TV channel, but the Professional Bull Riders pulled its programming in November 2024, claiming Merit Street had not made any rights payments. The two parties are currently in arbitration.
The bankruptcy filing notes that McGraw’s Peteski Productions provided “substantial capital infusions” to Merit Street to help cover expenses, but the company was unable to close a round of equity financing, leading to the Chapter 11 filing.
Merit Street Media represented Dr. Phil’s return to original programming after his highly-rated daytime show ended its 21-year run following the 2022-23 season, though the program continues in syndication.