The fight over Dr. Phil McGraw’s media empire has exploded into a legal storm. Newly revealed text messages paint a picture of executives plotting in the shadows, strategizing how to strip one company bare and breathe life into another. The filings land like dynamite in a courtroom already rattled by accusations of fraud, secrecy, and betrayal.
Explosive Messages Shake Merit Street
Court filings this week unveiled texts that stunned observers. Executives inside Merit Street Media appeared to discuss gutting the network while setting up a new company. The texts came from Joel Cheatwood, Merit’s chief operating officer, who laid out plans to shrink operations to nothing but reruns. His words outlined an eight-hour playlist looped endlessly with no new production. He even suggested Dr. Phil would prefer a setup where someone could just “push play and be done.” Cheatwood described that only a handful of staff would be left behind at Merit. He further explained that others would resign and immediately join Envoy, a new venture founded one day before the bankruptcy filing.
The Professional Bull Riders, owed $181 million by Merit Street, called these revelations devastating. In its filing, the league claimed the texts confirmed a deliberate scheme. The plan, according to PBR, was to siphon talent and intellectual property into Envoy. PBR’s lawyers argued the bankruptcy was never about saving Merit Street. Instead, it was about hollowing it out while preparing Envoy to take over. The filing stated the old network would be left as an empty shell. It added that this process was designed to shield assets from creditors. It painted a picture of manipulation carried out under legal cover.
TBN, another major player in the case, joined forces with PBR to press the issue. The Christian broadcaster accused Dr. Phil of “reprehensible conduct.” It claimed he manipulated urgency to force payouts and avoid accountability. TBN said Peteski Productions, Dr. Phil’s company, failed to turn over critical discovery materials. The broadcaster noted missing emails and texts tied directly to Envoy. Lawyers argued this left them unprepared for McGraw’s deposition. They accused him of delaying production to sabotage questioning. Together, TBN and PBR demanded sanctions and a postponement of hearings.
The Bankruptcy Under Fire
Merit Street filed for bankruptcy less than two months ago. The channel had launched as an “anti-woke” platform but quickly fell into financial chaos. Trinity Broadcasting Network was once a distribution partner. But after a half-billion-dollar deal collapsed, accusations flew in both directions. Merit claimed TBN saddled it with $100 million in debt. TBN countered with charges of fraud and deception. It alleged Dr. Phil engineered a false sense of urgency for financial gain. Court filings portrayed him as pressing hard for payments while offering little return.
Professional Bull Riders added fuel to the fire with its own accusations. The group said Merit Street deliberately avoided paying on a four-year contract. Its lawyers claimed the bankruptcy was not a shield but a weapon. In their view, Dr. Phil orchestrated it to dodge lawsuits and debts. They pointed directly to Envoy’s launch, which happened almost simultaneously. The timing, they argued, revealed intent. The fact Envoy was incorporated one day before the filing raised deeper suspicion.
As the case escalated, PBR accused Peteski Productions of stonewalling discovery. It filed motions demanding access to key documents. These included emails, financial records, and communications about Envoy. Court filings argued that using personal texts and emails was part of a cover-up. Cheatwood himself had warned colleagues against using company accounts. He said sensitive strategies should be handled privately. PBR claimed this showed an effort to conceal the real plan. They argued it was a coordinated attempt to keep the bankruptcy scheme hidden.
A Legal Drama Unfolds
The text exchanges made public captured internal fears. Cheatwood cautioned colleagues about appearing too close to Envoy. He admitted being told not to show attachment to the new company. He recognized that public actions could raise suspicion. He described himself as caught in a dilemma. The texts revealed a careful balancing act between two worlds. One network was collapsing while another was being built. His words painted a picture of quiet maneuvering under scrutiny.
TBN seized on these communications to argue misconduct. In its emergency motion, it accused Dr. Phil of manipulating discovery to delay accountability. It pointed to missing documents related to Envoy. The broadcaster said the refusal to comply crippled its ability to question McGraw. It accused him of restricting and delaying production intentionally. Lawyers warned this was an attempt to force postponement. They claimed his deposition would be incomplete without the missing records. As a result, they sought adjournment of upcoming hearings.
Dr. Phil’s team hit back hard. A spokesperson for Peteski dismissed the claims as “salacious.” They said the strategy of TBN and PBR was to starve the bankruptcy case administratively. They argued that Peteski had already provided complete information. They accused the broadcasters of making endless demands for marginal material. The spokesperson framed the attacks as attempts to damage Merit Street’s value. They also noted that the legal fight had already driven Merit’s counsel to the brink. They promised to present evidence refuting the allegations at the September hearing.