Television personality Phil McGraw, known as Dr. Phil, saw his conservative network, Merit Street Media, declare bankruptcy on July 2, 2025, while filing a lawsuit against its Fort Worth, Texas-based Christian broadcasting partner for allegedly destroying the business.
The Texas-based company listed assets and debts ranging from $100 million to $500 million in bankruptcy documents filed with the federal court in the Northern District of Texas. The network launched on April 2, 2024, aiming to combat what McGraw described as cultural attacks on American families.
McGraw’s company accused Trinity Broadcasting Network of deliberately undermining their joint venture. Court papers claim the Christian broadcaster abandoned its commitments and misused its controlling ownership position, leaving Merit Street responsible for more than $100 million in third-party debts.
The business relationship started in January 2023 when McGraw’s production company, Peteski Productions, partnered with Trinity Broadcasting Network. Their agreement required Trinity to provide distribution and production services to Merit Street without charge, while McGraw’s firm would supply fresh programming, including new “Dr. Phil” episodes and special shows.
However, the network alleges Trinity Broadcasting violated those commitments almost from the beginning. Legal filings state that Trinity’s actions represented a conscious, intentional pattern of deliberate choices made with full knowledge that the result would be to sabotage and destroy a new but already nationally recognized network.
Court documents detail significant production problems under Trinity’s management. The broadcaster supplied malfunctioning screens and teleprompters during live broadcasts, operated an inadequate control room from a truck, created a broken mobile app for viewers, and provided basic video editing tools. Staff members struggled to make phone calls inside the studio because of weak cellular reception.
Programming content featured McGraw embedded with immigration enforcement during operations in Chicago and Los Angeles, as well as his August 2024 conversation with presidential candidate Donald Trump. The network also secured rights to air Professional Bull Riders events, but PBR terminated the contract in November 2024 after Merit Street failed to pay rights fees.
The venture marketed itself as an alternative to mainstream media, particularly targeting middle America audiences. Merit Street Media launched in 2023 with plans to debut its television network in February 2024. The launch was later delayed to April 2, 2024, to achieve widespread distribution, an unprecedented feat for a startup network.
At launch, McGraw explained his vision: The media company would serve as an information resource and strategy center to defend America and its families from an unprecedented cultural assault he characterized as “woke.” He expressed his patriotism and belief in family values, declaring: “Together we are going to stand strong and fight for the very soul and sanity of America and get things that matter back on track.”
Trinity Broadcasting’s partnership showcased various television personalities, including Nancy Grace, Bear Grylls, and Steve Harvey, alongside McGraw as the primary host.
Despite ambitious plans, the company faced financial difficulties. Management implemented substantial workforce reductions, eliminating 40 positions weeks before the bankruptcy filing, following the previous layoff of 38 employees, more than one-third of its staff, in August 2024.
Bankruptcy records indicate the business owes between 200 and 999 creditors. Outstanding debts include those owed to television providers, broadcasting companies, and ratings organizations, resulting from the failure to pay for certain programming content.
Legal documents reveal complicated financial structures involving Trinity Broadcasting and associated entities. Trinity allegedly arranged for CrossSeed, a connected company, to provide the network with a $25 million loan. CrossSeed leadership includes Trinity’s president, Matthew Crouch, and former business officer Frank Amedia. CrossSeed later transferred the loan to TCT Ministries in March 2025.
McGraw’s Peteski Productions provided significant debt infusions, amounting to $25 million, from February through May to the company, while Merit Street sought potential equity investors, according to bankruptcy filings.
McGraw’s company characterizes these financial arrangements as schemes benefiting Trinity at Merit Street’s expense. The lawsuit argues that Trinity exploited its position to serve its own interests and those of its leadership, while burdening the network with costly obligations.
Trinity Broadcasting Network, headquartered in Fort Worth, identifies itself as the world’s largest Christian television network. Neither Trinity nor TCT Ministries has commented on the legal action.
The lawsuit also named TCT Ministries, a Christian broadcaster from Marion, Illinois, as a defendant. Attorneys contend that the loan transfer to TCT constitutes an improper preference and request that the court subordinate Trinity and TCT’s claims behind those of other creditors due to Trinity’s alleged misconduct.
Legal filings identify Trinity’s most damaging action as deliberately causing the network to lose national distribution by withholding required payments despite acknowledging full responsibility for those payments.
Court papers explained: “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.”
Attorneys seek monetary damages and legal fees from Trinity Broadcasting without specifying amounts. The case demonstrates the complete failure of what was intended as a mutually beneficial partnership between McGraw’s media venture and the established Christian broadcaster.
Initially, the television network reached more than 80 million households, with “Dr. Phil Primetime” serving as the cornerstone program. The company marketed itself as a premium multi-platform media brand led by McGraw, the bestselling author and award-winning host.
The venture’s failure highlights the obstacles facing new television companies in an industry where consumers are increasingly choosing streaming services and digital news over traditional cable. The bankruptcy filing occurred roughly one year after the program officially launched, following McGraw’s decision to end his 21-season CBS program in May 2023.
