Dr. Phil McGraw could face sanctions in an ongoing legal dispute with Trinity Broadcasting Network (TBN) following a soured $500 million partnership.
TBN is an international Christian-based broadcast television network. In 2023, the network struck a deal with Peteski Productions, McGraw’s production company, to create Merit Street Media and bring the “Dr. Phil Show” to TBN. In the deal, TBN became the majority stake holder in the newly formed media company.
McGraw sought the deal with TBN after deciding to part ways with CBS amid concerns about censorship. McGraw reportedly said, “I don’t want snot-nose lawyers telling me what I can and can’t say on TV.”
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According to Variety, TBN’s suit claims that McGraw had agreed to produce 160 episodes of a 90-minute program in exchange for $50 million a year for 10 years but that McGraw had yet to produce a single episode of the program.
TBN also claims that Peteski and McGraw misrepresented how much McGraw’s show would cost to produce and how much ad revenue it would generate. According to TBN, after the launch of Merit Street Media, “it became clear that McGraw and Peteski could not deliver the viewership numbers, product integrations, or advertising revenues they previously promised to TBN.”
“TBN expressed its disappointment with the lack of viewership, product integrations, and advertising to Peteski and McGraw,” the suit says.
TBN alleges that Merit Street Media became a financial burden, as the network was funding the majority of Merit Street Media’s operations. TBN expressed openness to handing over majority ownership of Merit Street Media to Peteski in exchange for the settling of certain debts.
However, TBN claims, Merit Street Media filed for Chapter 11 bankruptcy, which “came as a surprise to TBN because it still controlled two of the three directors on Merit Street’s board” and those directors had not approved filing for bankruptcy.
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Merit Street Media simultaneously sued TBN for breach of contract, claiming that TBN failed in its duty to secure national distribution of McGraw’s content.
