Dr. Phil’s Merit Street Media files for Chapter 11, sues Trinity Broadcasting

Merit Street Media, the television venture launched by talk show host Phil McGraw in early 2024, has filed for Chapter 11 bankruptcy and initiated legal action against distribution partner Trinity Broadcasting Network.

In the bankruptcy filing submitted to the U.S. Bankruptcy Court in the Northern District of Texas, the company cited “severely strained liquidity” and an inability to secure outside investment as primary reasons for the filing. Ongoing legal conflicts with Trinity Broadcasting and the Professional Bull Riders organization were also noted as contributing factors.

The company’s lawsuit against Trinity alleges breach of contract, stating that the broadcaster failed to provide national distribution and other critical support as outlined in their agreement.

A statement from Merit Street claimed Trinity “failed to provide clearly agreed-upon national distribution and other significant foundational commitments.”

Trinity Broadcasting has not publicly responded to the lawsuit.

Merit Street estimates its assets and liabilities between $100 million and $500 million, with 200 to 999 creditors, including DirecTV, Nexstar and Nielsen.

According to the lawsuit, TBN agreed to contribute access to a distribution network and provide “first class quality” production services to support McGraw’s content, including “Dr. Phil Primetime” and other programming. In return, McGraw and his production company, Peteski Productions, contributed content and funding.

“Shortly after Merit Street was formed,” the complaint states, TBN “began to abuse its power as a controlling shareholder” and engaged in practices that allegedly enriched TBN and its CEO Matthew Crouch at Merit Street’s expense. These include forcing costly third-party distribution deals, leasing studio space at high rates, and failing to transfer “must carry” rights for national distribution.

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The suit claims TBN’s actions left Merit Street without a platform to air its programming. “Merit Street has nowhere to send its broadcast signal and nowhere to air its programming no matter how great it may be,” the complaint states.

Merit Street was launched in early 2024 and is jointly owned by McGraw and TBN.

McGraw’s production company, Peteski Productions, made several capital infusions into Merit Street, according to the filing. However, the media company was unable to complete a round of equity financing, prompting the bankruptcy declaration.

It features interview and commentary programs, including a high-profile interview with Donald Trump after his conviction on New York state charges, and coverage of immigration enforcement activities.

In November 2024, the Professional Bull Riders organization pulled its content, citing nonpayment for broadcast rights. That matter is currently in arbitration.

The company also experienced internal restructuring.

In August 2024, Merit Street cut about one-third of its workforce, primarily affecting news operations. At the time, the company said the layoffs were intended to improve efficiency and enhance cross-department collaboration.

Merit Street content has been available through major distributors including DirecTV, Dish, AT&T U-verse and Comcast Xfinity, but the network has not been carried by most virtual multichannel video programming distributors or on major streaming platforms. It also operates the free streaming channel Merit+.

For now, the company says it will continue to air library programming while undergoing restructuring.