Merit Street Media, the Fort Worth-based venture helmed by Dr. Phil McGraw, filed for Chapter 11 bankruptcy in the Northern District of Texas on July 2, 2025, in tandem with a high-stakes lawsuit accusing longtime partner Trinity Broadcasting Network (TBN) of breaching contract and fiduciary obligations
Conceived in late 2023 as a joint venture between McGraw’s Peteski Productions and TBN, the network launched its flagship Merit TV in April 2024. It promised conservative-leaning, family‑focused news, true crime, sports, and opinion programming, notably featuring “Dr. Phil Primetime,” Nancy Grace, Steve Harvey, and Bear Grylls
According to the legal complaint, TBN failed to deliver on essential distribution, production, and financing responsibilities, saddling Merit Street Media with over $100 million in debt and depriving it of national carriage. The lawsuit characterizes the alleged neglect as a “conscious, intentional pattern of choices made with full awareness … to sabotage and seal the fate of a new but already nationally acclaimed network”.
Merit Street’s filing highlights that TBN, as controlling shareholder, withheld promised “must‑carry” rights and distribution support. It argues that Peteski Productions was compelled to cover otherwise contractually obligated expenses—networking fees, production costs, insurance, and staffing—resulting in roughly $96 million in unpaid distribution charges.
Operational failures further undermined the venture. The lawsuit describes production setbacks, such as malfunctioning teleprompters, a makeshift control room inside a truck, glitchy apps, poor editing tools, and inadequate phone and cell coverage on set.
The financial collapse followed two rounds of layoffs—first in August 2024 and again in June 2025—and the suspension of marquee programming, including “Dr. Phil Primetime” and Professional Bull Riders coverage, which had been cut following non‑payment.
Court filings estimate Merit Street’s assets and liabilities each range between $100 million and $500 million, with over 200 creditors including DirecTV, Dish Network, and even Peteski Productions itself. McGraw’s own company is reported to have injected $32 million, with an additional $13 million pledged to stabilize operations and support ongoing litigation.
Despite the turmoil, insiders note McGraw remains personally committed to the brand and core team. One source framed the restructuring as a deliberate strategy to preserve the network’s conservative mission, rather than signal permanent closure.
Trinity Broadcasting Network, now majority stakeholder in Merit Street, has not yet issued a public statement regarding the claims.The complaint charges TBN with breach of contract, breach of good faith, and breach of fiduciary duty, and calls for damages, legal fees, and a full forensic audit.
From a conservative viewpoint, this dispute highlights a broader trend: even networks courting right‑leaning audiences must navigate complex media partnerships and operational pitfalls. Supporters of McGraw argue that conservative voices in mainstream media should be backed with robust infrastructure and full execution, not undermined by avoidable failures.
In a country where many believe traditional values face growing cultural challenges, Merit Street Media positioned itself as a bulwark of those principles. The current legal fight underscores that ideological alignment alone cannot substitute for solid business foundations .
Looking ahead, Merit Street Media’s Chapter 11 filing provides breathing room during restructuring, while parallel litigation will test contract enforcement in high‑profile media joint ventures. McGraw and his backers appear ready to defend their vision—provided court decisions swing in their favor.
