Dr. Phil McGraw’s media venture, Merit Street Media, filed for bankruptcy Wednesday and simultaneously launched a lawsuit against business partner Trinity Broadcasting Group, accusing the Christian network of sabotaging the company.
Merit Street, launched in 2024 as a joint venture between McGraw’s Peteski Productions and Trinity Broadcasting, alleges Trinity breached contracts and drove the company into unsustainable debt.
In a lawsuit filed alongside the Chapter 11 bankruptcy in a Texas federal court, Merit Street claims Trinity used its control of the company to “improperly and unilaterally burden” it with debt while failing to uphold key commitments.
“This lawsuit arises out of a sad but oft told story,” the complaint reads. “One side lived up to its commitments. The other, Trinity, did not.” The filing accuses Trinity of a “conscious, intentional pattern” that ultimately doomed the startup network.
The biggest issue, according to the complaint, was Trinity’s refusal to transfer its “must carry” rights, which would have ensured national distribution for Merit Street’s broadcast signal.
“Simply put, 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 complaint stated.
The filing estimates both assets and liabilities in the $100 million to $500 million range. Merit Street says Trinity should be held responsible for debts owed to third parties.
The network had positioned itself as a fresh conservative media voice, offering traditional family programming, news, sports, music, and true crime. It also served as the new home of McGraw’s “Dr. Phil Show.”
Merit Street is seeking damages, legal fees, and any additional relief the court deems appropriate.