Dr. Phil accused of fraud in $500M TV deal gone wrong
The financial collapse of Dr. Phil McGraw’s Merit Street Media has escalated into a courtroom battle.
The Hollywood Reporter shared on Tuesday, August 19, that in a lawsuit filed this week in Texas federal court, McGraw’s former partner, Trinity Broadcasting, claims he misled the company in a $500 million, ten-year deal, alleging that he failed to produce the promised content while draining millions from the venture. The Christian network says the agreement — intended to deliver hundreds of new episodes of his flagship talk show — produced no results.
McGraw’s team rejected the accusation. In a statement, a spokesperson insisted that 214 new episodes of Dr. Phil Primetime aired on Merit, And “to say otherwise is absolutely false.”
According to the outlet, Merit Street Media, now in bankruptcy, has also sued Trinity Broadcasting, accusing the network of sabotaging the venture by withholding national distribution and forcing expensive deals that strained the company. Its complaint paints a picture of Trinity as a controlling shareholder that provided “shoddy production services” and prioritized its own interests.
Trinity offers a starkly different narrative. The company says McGraw, 74, courted them in 2022 after leaving CBS, promising to cut costs by moving production to Texas and firing union workers, while boasting of the show’s advertising strength. He allegedly demanded a $20 million payment through his production arm, Peteski, threatening to return to CBS if his terms weren’t met.
According to the filing, Trinity poured more than $100 million into the partnership, sometimes covering as much as $13 million per month, only to see McGraw fall short of delivering viewership and ad revenue. It also accuses him of refusing to hand over old episodes, reneging on a $9 million payment, and later demanding $100 million for 50 percent control of the library.
The lawsuit accuses him of mismanagement, fraud, and breach of contract, and asks the court to determine control over the Dr. Phil archives and define both sides’ obligations in the failed deal.
Parade has reached out for a comment, but McGraw or his team has yet to respond.