Dr. Phil McGraw, a well-known television personality, recently faced significant challenges with his television network, Merit Street Media, which filed for bankruptcy on a Wednesday. In a dramatic turn of events, the network also initiated legal action against major Christian television entities, specifically the Trinity Broadcasting Network (TBN) and TCT Ministries. The lawsuit highlights allegations that these organizations not only inflicted harm on Merit Street’s business operations but also played a pivotal role in precipitating its financial distress.
Merit Street’s legal claim was lodged at the US Bankruptcy Court situated in the Northern District of Texas. The network, headquartered in Fort Worth, accuses TBN—its former broadcast partner—of failing to meet its contractual obligations, thus abusing its position as the dominant shareholder in the venture. According to the court documents, Merit Street has shouldered over $100 million in liabilities as a direct outcome of TBN’s alleged misconduct. The lawsuit seeks to hold TBN accountable for its choices, which Merit Street describes as a “conscious, intentional pattern” aimed at undermining the success of the network.
In a statement issued by a spokesperson for Merit Street, the company explicitly outlined its grievances against TBN, noting the network’s failure to deliver essential national distribution along with other foundational commitments vital for the survival and prosperity of Merit Street. This suit is part of a larger restructuring process initiated by Merit Street itself as it grapples with financial constraints.
The looming bankruptcy announcement and the lawsuit occur just over a year following the network’s official launch. Dr. Phil established Merit Street despite the backdrop of a tumultuous cable television landscape, which has been increasingly threatened by consumer trends favoring streaming services over traditional cable offerings. This venture came on the heels of the conclusion of Dr. Phil’s long-running show on CBS, which ended in May 2023 after 21 seasons.
Allegations in the lawsuit indicate that Merit Street’s difficulties began almost immediately upon its formation in January 2023, following Dr. Phil’s collaboration with TBN, the world’s largest Christian network known for its religious-themed programming. Under the terms of the partnership, TBN was expected to provide distribution and production services to Merit Street at no cost. Moreover, TBN was meant to make specific financial contributions to Dr. Phil’s Peteski Productions in exchange for new programming and exclusive content.
However, contrary to these expectations, the lawsuit claims that TBN “reneged” on its commitments and engaged in practices that prioritised its personal interests, specifically those of its CEO, Matthew Crouch. Instead of facilitating Merit Street’s success through collaboration, the allegations suggest that TBN’s actions contributed to the network’s growing financial liabilities, culminating in significant loans from affiliated company CrossSeed, which is closely linked to TBN’s leadership.
At the time of publication, TBN and TCT had not issued any statements regarding the accusations laid out in the lawsuit. Throughout its brief operation, Merit Street has produced programming that includes controversial topics, such as Dr. Phil’s output during immigration enforcement operations. The network also featured a high-profile interview with Donald Trump during his campaign for the presidency in August 2024.
Shortly after launching Merit Street, Dr. Phil publicly expressed his ambition for the network, stating his desire for it to be a “destination network,” seamlessly integrated into viewers’ daily routines. Now, as Merit Street navigates the complexities of bankruptcy proceedings, it seeks to recover damages as well as cover its legal expenses, indicating the turbulent road ahead for the network and its well-known founder.
