Dr. Phil McGraw's television network Merit Street Media filed for Chapter 11 bankruptcy protection Wednesday while simultaneously suing its distribution partner Trinity Broadcasting Network for breach of contract, marking the culmination of a bitter dispute that has left the Fort Worth-based company drowning in debt.
The bankruptcy filing in the Northern District of Texas caps months of financial turmoil for the network launched in April 2024, which reported assets and liabilities ranging between $100 million and $500 million. The dual legal maneuver reflects the intertwined nature of Merit Street's financial collapse and its acrimonious relationship with Trinity Broadcasting, which holds a 29% equity stake in the company.
Merit Street entered bankruptcy with a $21.4 million debtor-in-possession loan from Peteski Productions, Dr. McGraw's production company, comprising $13.4 million in new funding and a $7.9 million rollup of existing bridge loans1. The company lists between one and 49 creditors, with DirecTV owed $1.68 million, Mountain Broadcasting Corporation $1.35 million, and OLY Media $1.29 million among the largest unsecured claims2.
The filing follows two rounds of layoffs that eliminated 78 positions since August 2024. Most recently, 40 employees were affected when the network placed "The Dr. Phil Show" on summer hiatus in June3. Merit Street also lost its content partnership with Professional Bull Riders in late 2024 over unpaid rights fees, leading to a $3.5 million arbitration claim14.
Merit Street alleges Trinity Broadcasting breached commitments to provide free nationwide carriage and production services for the MeritTV channel, forcing the company to absorb approximately $96 million in carriage costs1. "Trinity Broadcasting Network is being sued by Merit Street Media for failing to provide clearly agreed-upon national distribution and other commitments critical to the network's continuing success and viability," a Merit Street spokesperson told Bloomberg Law2.
The lawsuit is part of Merit Street's restructuring proceeding, as the company plans to market its broadcast assets and intellectual property while pursuing fraud and preference claims against both Trinity Broadcasting and Professional Bull Riders1.
Merit Street Media operates what it describes as a "premier multi-platform destination media brand" featuring programming from Nancy Grace, Mike Rowe, Bear Grylls, and Steve Harvey, reaching over 90 million television homes through cable, satellite, and streaming platforms1. The network's troubles underscore the challenges facing independent media companies in an increasingly consolidated marketplace.
The company's financial difficulties emerged despite McGraw's high profile, including his recent appointment as commissioner of President Trump's Religious Liberty Commission2.
