Dr. Phil’s Latest Drama Has Nothing to Do With His Guests

He’s usually the one lecturing guests on his show to get their lives together, but now he’s the one in trouble.

A failed partnership between Dr. Phil and a Christian network has spiraled from a Chapter 11 bankruptcy in July into a full Chapter 7 liquidation.

According to The Hollywood Reporter, Dr. Phil and his Texas-based network, Merit Street Media, are now at risk of losing everything.

The downfall of the Dr.

The debt stemmed from poor ratings on Dr. Phil’s new program compared to his previous CBS network run. Low viewership meant advertising and product integration revenues fell short, leaving the company more than $100 million in the red by June. Meanwhile, the Christian network paid roughly $13 million per month into production, even though episodes were not being produced on schedule.

Entertainment Weekly reported that Merit Street Media, which launched in April 2024, is headed for liquidation after U.S. Bankruptcy Judge Scott W. Everett of the Northern District of Texas ruled against Dr. Phil. Under Chapter 7, control of the company will be placed in the hands of a court-appointed trustee to sell assets and resolve disputes.

Several factors contributed to Dr. Phil, who suprised many with his support for Trump, losing his new media company, but the most damaging was Judge Everett’s finding that he deleted a text message relevant to the case, violating discovery orders.

TMZ reports the text involved Dr. Phil discussing plans to “wipe out” creditor claims from both TBN and Professional Bull Riders, another creditor. The judge said the act suggested he was trying to protect his own interests at the expense of others. Everett wrote that dismissal “would allow Mr. McGraw to pay his favored creditors and not pay his unfavored creditors, as his own deleted text makes clear he wants to do.”

Dr. Phil’s relationship with Peteski Productions and Trinity Broadcasting Network (TBN) also soured after the broadcaster allegedly failed to provide more than $100 million in promised financial support. Merit Street executives sued TBN for breach of contract, while TBN countersued, accusing Dr. Phil’s team of mismanagement and contractual breaches.

A major point at trial was Dr. Phil allegedly maneuvering to secure majority control of Merit Street Media to attract investments from family and friends at a $425 million valuation. TBN reportedly agreed, giving Dr. Phil, through Peteski Productions, a 70 percent stake while cutting its own stake to 30 percent.

Under a proposed $500 million, 10-year agreement, TBN was supposed to provide production and distribution services, while Peteski would deliver new content, including 160 episodes for the network. According to TBN’s lawsuit, Dr. Phil described the deal as a “gangster move” to reduce the network to a “passive minority investor.”

Peteski Productions plans to appeal the ruling, calling the court’s statements about evidence destruction “improper” and “simply untrue.” In a statement to The Hollywood Reporter, a spokesperson said, “We will not let this stand given all that Dr. Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties.”

Dr. Phil, the TV show, ran from 2002 to 2023. Dr. Phil co-created shows with Oprah Winfrey and has worked with several production companies, including Harpo Productions (2002–10), Stage 29 Productions (2010–23), Peteski Productions (2005–23), and CBS Media Ventures.