Dr. Phil McGraw’s ambitious television venture, Merit Street Media, has been ordered into Chapter 7 liquidation by federal Judge Scott W. Everett, marking a dramatic collapse for the once-promising network. Launched in April 2024 with backing from Trinity Broadcasting Network (TBN) and McGraw’s Peteski Productions, the network aimed to reach over 80 million homes with 160 new episodes of Dr. Phil Primetime and a slate of original programming.
In less than two years, Merit Street unraveled due to production shortfalls, unmet budget expectations, and management controversies. Court documents revealed that McGraw deleted critical text messages during bankruptcy proceedings and referenced a so-called “gangster move” to seize control from TBN. Judge Everett called the network “dead as a doornail,” finding no genuine effort at reorganization and raising allegations of strategic manipulation.
Financial fallout was swift. Professional Bull Riders (PBR) filed a $181 million claim for unpaid rights fees, terminating a four-year broadcast deal. TBN, which invested over $100 million, accused McGraw of orchestrating a “fraudulent scheme” that could expose the network to losses approaching $500 million. Creditors, including distributors such as DirecTV and Dish Network, are now seeking repayment for millions in unpaid invoices.
The workforce was decimated. Layoffs began in August 2024 and continued through June 2025, culminating in mass dismissals following the July 2 bankruptcy filing. Peteski Productions paid $925,000 in pre-bankruptcy wages, but hundreds of employees and contractors lost steady income and contracts. High-profile partners, including Steve Harvey Global, Nancy Grace, and Chris Harrison, faced canceled projects and unfulfilled programming commitments.
Adding controversy, McGraw launched Envoy Media in July 2025, shortly after the bankruptcy filing, with plans to acquire Merit Street’s assets. Judge Everett cited evidence suggesting the Chapter 11 filing may have been engineered to favor McGraw while leaving creditors unpaid. Legal experts described the case as a rare judicial rebuke of executive misconduct in celebrity-led ventures.
As Merit Street enters liquidation under an independent trustee, the future of its programming, talent, and partnerships remains uncertain. McGraw has announced plans to appeal the ruling, but control of the network is lost, and litigation from TBN and PBR continues.
The collapse of Merit Street Media serves as a cautionary tale of rapid celebrity-driven expansion, insufficient oversight, and the cascading consequences for employees, partners, and audiences when promises are left unfulfilled.
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