Dr. Phil Breaks His Silence: ‘My TV Network’s Being Sold for Scrap!
Dr. Phil McGraw — one of television’s most recognizable figures — has suffered a major legal and financial blow after a federal bankruptcy judge ruled that his media company will be liquidated and sold off for parts.
According to Variety, a U.S. bankruptcy court officially converted the Merit Street Media case from Chapter 11 to Chapter 7 on Tuesday, effectively ending Dr. Phil’s attempt to reorganize his struggling network.
The ruling means Merit Street Media will be dissolved, and its assets will be sold to repay creditors — marking a significant setback for McGraw’s latest venture into television ownership.
Inside the Merit Street Media Collapse
Merit Street Media — a collaboration between Dr. Phil’s Peteski Productions and the Christian non-profit network TBN (Trinity Broadcasting Network) — launched in April 2024 with big ambitions to shake up daytime television.
However, just three months later, the company filed for Chapter 11 bankruptcy protection, citing deep financial struggles and internal disputes.
Soon after, Merit Street executives sued TBN for breach of contract, claiming the organization failed to meet its financial obligations. TBN hit back with a countersuit, accusing Dr. Phil of secretly trying to enrich himself through the business partnership — allegations McGraw’s camp strongly denies.
Judge Cites Deleted Text and Creditor Favoritism
In his ruling, Judge Scott W. Everett of the Northern District of Texas cited “issues of transparency” within McGraw’s operations.
According to court documents, Everett noted that Dr. Phil had deleted a text message in which he allegedly discussed plans to “wipe out” claims from TBN and another creditor, Professional Bull Riders (PBR).
The judge concluded that keeping the company under Chapter 11 protection would give McGraw too much control over which creditors got paid — and which didn’t.
“Continuing under Chapter 11 would allow Dr. McGraw to prioritize his favored creditors,” the judge wrote.
“A Chapter 7 liquidation better serves the interest of all creditors.”
With that decision, Merit Street Media’s short-lived run officially came to an end.
Dr. Phil’s Team Responds
A spokesperson for Peteski Productions, Dr. Phil’s parent company, said they plan to appeal the decision, maintaining that the company was unfairly treated throughout the process.
“We strongly disagree with the ruling and will be filing an appeal,” the spokesperson said. “Dr. McGraw remains committed to his audience and his work in the media industry.”
While Dr. Phil has not personally commented on the decision, insiders close to the production suggest he was “shocked and disappointed” by how quickly the court moved to dissolve the network.
A Legacy in Question
For decades, Dr. Phil McGraw has been one of the most influential figures in television — from his breakout on The Oprah Winfrey Show to hosting over 20 years of his own syndicated talk show.
The launch of Merit Street Media was meant to be his next big chapter — a chance to shape the kind of content he believed television was missing. Instead, the network’s abrupt collapse has left questions about McGraw’s future in broadcasting and his ability to bounce back from the controversy.
Still, as one industry insider told Variety, “If there’s one thing Dr. Phil knows how to do, it’s rebuild.”
