Dr. Phil’s Network Files Bankruptcy, Sues Ex-Partner TBN
▼ Summary
– Dr. Phil McGraw’s Merit Street Media filed for Chapter 11 bankruptcy and sued Trinity Broadcasting Network (TBN) for breach of contract and fiduciary duty.
– Merit Street alleges TBN withheld distribution payments, causing the loss of national distribution and forcing $100+ million in obligations to third parties.
– The lawsuit claims TBN provided subpar production services, including malfunctioning equipment and poor facilities, harming Merit Street’s operations.
– Merit Street reported assets and liabilities between $100 million and $500 million in its bankruptcy filing and previously laid off 78 employees.
– The lawsuit also names TCT Ministries, alleging TBN facilitated a $25 million loan from CrossSeed to Merit Street, later transferred to TCT under questionable terms.
Dr. Phil McGraw’s media venture, Merit Street Media, has filed for Chapter 11 bankruptcy while simultaneously launching a lawsuit against its former broadcast partner, Trinity Broadcasting Network (TBN). The legal action accuses TBN of breaching contractual agreements and failing to uphold its fiduciary responsibilities, actions Merit Street claims led to financial losses exceeding $100 million.
The complaint, filed in a Texas bankruptcy court, alleges TBN deliberately sabotaged Merit Street’s operations by withholding critical distribution payments, effectively cutting off the network’s national reach. “TBN’s actions weren’t accidental, they were a calculated effort to undermine a promising new media platform,” the lawsuit states. Without distribution, Merit Street argues it was left with no viable way to broadcast its content, despite early acclaim for its programming.
Technical failures further compounded the issues. According to the filing, TBN’s production support fell far short of professional standards, with malfunctioning equipment, unreliable cell service, and subpar editing tools disrupting operations. “What was promised as first-class production turned into a logistical nightmare,” the complaint notes, describing teleprompters failing during live broadcasts and control rooms operating out of makeshift setups.
Merit Street’s bankruptcy filing reveals liabilities ranging between $100 million and $500 million. The company, which launched in April 2024 with ambitions to reach over 80 million households, has already undergone significant layoffs, cutting 38 employees last year and placing another 40 on temporary leave this summer.
The lawsuit also names TCT Ministries, a Christian broadcaster, as a defendant. Merit Street alleges TBN orchestrated a $25 million loan through CrossSeed, a company tied to TBN leadership, before transferring the debt to TCT under questionable timing. The network argues this transaction should be invalidated as a preferential transfer under bankruptcy law.
TBN, which brands itself as the world’s largest Christian television network, has yet to publicly respond to the allegations. Meanwhile, Merit Street remains adamant that TBN’s actions warrant equitable subordination, placing its claims below those of other creditors.
Dr. Phil, who gained fame through Oprah Winfrey’s show before launching his own successful daytime program, positioned Merit Street as a multi-platform media brand. Despite early setbacks, the network had aimed to carve a niche with its flagship program, Dr. Phil Primetime. The ongoing legal battle now casts uncertainty over its future.
(Source: Variety)
