Dr. Phil Allegedly Orchestrates Merit Street Bankruptcy, Launches New Company to Evade Creditor Payments, as per Professional Bull Riders' Accusations
In a surprising turn of events, Merit Street Media, the media company founded by Dr. Phil McGraw, filed for Chapter 11 bankruptcy protection on July 2, 2025. The filing, reported earlier by Debtwire, has sparked a legal battle involving Merit Street's creditors and partners, including Professional Bull Riders (PBR), who claim a $181 million debt.
The bankruptcy court has scheduled an Aug. 19 hearing to determine the case's future, whether it be a Chapter 7 conversion, dismissal, or debtor-in-possession financing. The hearing comes amidst ongoing disputes, with PBR accusing Merit Street of filing for bankruptcy in bad faith to avoid repaying its debts.
The allegations stem from Merit Street's failure to pay PBR contractually guaranteed rights fees. PBR has requested "all documents and communications" from Merit Street and Dr. Phil's production company, Peteski Productions, to investigate potential asset depletion, overspending, breaches of fiduciary duties, and improper bankruptcy filing.
Interestingly, PBR has also requested information regarding Dr. Phil's alleged "eleventh-hour poker strategy" and "gangster move" regarding Merit Street Media. The requested documentation could shed light on any questionable actions leading up to the bankruptcy filing.
However, it's important to note that there is no clear evidence that Dr. Phil intentionally led Merit Street Media to file for bankruptcy in a "bad faith" move to avoid repaying PBR and other creditors while transferring assets to another company.
Prior to the bankruptcy filing, Dr. Phil officially launched Merit Street Media in April 2024. Just a month before the filing, on July 14, 2025, Dr. Phil announced the formation of a new company, Envoy Media Co., which focuses on news, entertainment, and citizen journalism.
The situation involves complex legal disputes and accusations primarily between Merit Street Media and its creditors and partners. It's a far cry from the success that Dr. Phil enjoyed with his daytime show, "Dr. Phil," which ended after 21 seasons in 2023.
Despite the ongoing legal battles, it appears that Dr. Phil and his companies have made some effort to address obligations. For instance, Peteski Productions has voluntarily paid $925,000 to former Merit Street Media employees outside official bankruptcy proceedings.
The bankruptcy court hearing in August promises to be a crucial moment in the saga of Merit Street Media. As more information comes to light, the true nature of the disputes and the future of Merit Street Media will become clearer.
The bankruptcy court hearing in August may provide clarity on allegations that Merit Street Media filed for Chapter 11 bankruptcy in bad faith, with Professional Bull Riders (PBR) accusing the company of doing so to avoid repaying its debts. Despite the ongoing legal battles, it seems that the entertainment industry might be affected, as Dr. Phil's newly formed company, Envoy Media Co., focuses on news and entertainment.
