Dr. Phil's Merit Street Media files for bankruptcy, sues Trinity Broadcasting
Merit Street Media, which was formed in 2023 and launched Merit TV in 2024, is a joint venture of McGraw's Peteski Productions and Trinity Broadcasting.
McGraw agreed to provide Merit Street with new episodes of his 'Dr. Phil Show,' primetime specials and other content, while Trinity Broadcasting contributed distribution and production services, according to the lawsuit that essentially blames the Christian broadcaster for the bankruptcy.
Merit Street accused Trinity Broadcasting of reneging on its obligations and abusing 'its position as the controlling shareholder of Merit Street to improperly and unilaterally burden Merit Street with unsustainable debt, doing so either without notice or in direct violation of promises not to do so.'
'This lawsuit arises out of a sad but oft told story: one side lived up to its commitments but the other, the Defendant [Trinity], did not. Moreover, these failures by [Trinity] were neither unintended nor inadvertent. They were a conscious, intentional pattern of choices made with full awareness that the consequence of which was to sabotage and seal the fate of a new but already nationally acclaimed network,' the complaint, filed in conjunction with the Chapter 11 bankruptcy filing in U.S. Bankruptcy Court for the Northern District of Texas, stated.
4 Dr. Phil addresses his crowd during an season 7 episode of his show in 2008.
Dr. Phil / YouTube
'This fresh voice on the national stage is inexorably going dark, going off the air because TBN has refused to honor its commitment to transfer its must carry rights and thereby provide national distribution for the network—Merit Street,' the complaint continued. 'And this conduct stretches beyond mere breach of contract and extends to breach of fiduciary duty and breach of the duty of good faith and fair dealing—the full extent to which may require a forensic accounting audit.'
Trinity 'formed Merit Street as a joint venture and contractually committed to provide valuable services to the joint venture,' according to the complaint.
'But [Trinity] then reneged on its obligations and abused its position as the controlling shareholder of Merit Street to improperly and unilaterally burden Merit Street with unsustainable debt, doing so either without notice or in direct violation of promises not to do so,' the complaint stated, noting that it owes over $100 million to third parties and that Trinity, referred to as 'TBN' in court documents, should be responsible.
4 Merit Street accused Trinity Broadcasting of reneging on its obligations.
4 McGraw agreed to provide Merit Street with new episodes of his 'Dr. Phil Show,' primetime specials and other content.
Dr. Phil/YouTube
'The most egregious impact is TBN's conscious and knowing choice to cause Merit Street to lose its national distribution by withholding distribution payments despite repeatedly acknowledging those distribution payments were 100% TBN's sole responsibility. Simply put, as a result of TBN's conduct, Merit Street has nowhere to send its broadcast signal and nowhere to air its programming no matter how great it may be,' the complaint stated.
Merit Street bills itself as an organization that 'provides clarity and solutions on the issues and topics that matter most to Americans,' including 'traditional family content,' news, sports, music, true crime and more.
4 President Donald Trump shakes hands with Dr. Phil McGraw during an event in the White House Rose Garden on May 1, 2025.
Getty Images
The bankruptcy filing lists both estimated assets and liabilities in the $100-$500 million range. Merit Street is seeking damages, legal costs, and 'further relief as the Court may deem just and proper.'
Trinity Broadcasting did not immediately respond to a request for comment by Fox News Digital.
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'It will be better than anyone in the history of the world at doing certain things.' For now, the device at the shop is only performing text-based tattoos. Clients can choose from a curated selection of fonts for their word or phrase. The team opted to start with small-scale text because Pennington believes the device may have an edge over human artists in that particular area. Text requires a high degree of symmetry and precision. Certain letters with sharp points, like W and M, are also potentially more susceptible to overlapping ink, which can result in a 'blown-out' look. The device's ability to accurately control the location and shade of each dot, he argues, means it can render various loops, serifs, and corners with a level of 'finesse' hard for a human tattooer to consistently match. Currently, the studio charges the same price for a tattoo of comparable size whether it's done by the machine or a human. The device, on loan until 2026, moves between the studio's main room, where it works alongside artists, and a smaller side area. Bang Bang notes that space is tight in his SoHo studio, which wasn't exactly designed to accommodate a refrigerator-sized 'robot.' While many tattoo designs and placements are still better suited to a human hand, he's bullish about where the technology could be heading. 'It will be better than anyone in the history of the world at doing certain things,' he says. That reckoning, he caveats, may still be quite a ways off. The current device (the only one of its kind) currently costs $120,000 to build, though Pennington claims Blackdot has a 'clear path' to reduce the unit cost to around $50,000. Suffice it to say, your dependable neighborhood tattoo artists aren't going away anytime soon. Blackdot's business model has two main components. First, the company plans to lease its device to select studios — and potentially fashion houses or med spas. Second, it aims to build a centralized tattoo 'marketplace,' where artists — whether tattooers or other visual creators — can license their designs to Blackdot. A curated selection of these designs is made available to customers, who receive both the tattoo and an NFT (non-fungible token) certifying it as one of a kind. Pennington says he was inspired by watching his daughter play Roblox and noticed how young people are 'fanatic traders of digital assets.' These NFTs can be traded until the moment the design is actually tattooed. Blackdot is also considering a 'legacy' option, allowing people to pass down their licensed design to someone else in the event of their death. That may all sound pretty wacky on the customer end, but the concept does provide some material benefit for creators. Artists receive a royalty payment every time their design is executed by the device. In theory, that means an artist halfway around the world—or one who doesn't tattoo at all — can still be paid for having their work permanently etched into someone's skin. Bang Bang says the royalty concept was a major consideration for him, especially in a period where tattoo artists are constantly having their work posted on social media and copied by others without credit. Blackdot's arrival in the tattoo world has been polarizing, to say the least. Prominent tattoo commentators and online critics have described the process as robotic and impersonal. Getting a tattoo, they argue, is more than a transaction with a pretty picture at the end; it's a shared journey with an artist — a fundamentally human experience. Others have questioned the company's claim that the device can eventually handle a wide range of tattoos beyond its current capabilities. Blackdot has also faced criticism for its pricing, with some designs costing up to $10,000 — well out of reach for most tattoo clients. And, as with many forms of automation, there's understandable concern among artists who fear a machine like Blackdot could take away from their clients. Some tattoo artists aren't sold on the vision, either. Austin-based tattoo artist Dillon Forte, who has previously collaborated with Blackdot, recently told The Wall Street Journal some in the tattoo community have expressed concerns over whether or not this technology could one day take their job. Speaking with TMZ last year, Ink Master season 15 winner Bobby Johnson compared the machine to a 'production line' in other industries, which results in products lacking a human touch. And while Johnson thought there is a market for the machine, he was skeptical about whether or not it could really compare to human artists when designing larger, more comprehensive pieces like full arm sleeves and back pieces. 'I would assume even if they [Blackdot] are further ahead than I think, they still have a long way to go,' Johnson told TMZ. 'I think it's stupid. I think it's super dumb.' Bird pushes back against some of the criticism and notes that traditional tattoo enthusiasts likely aren't the clientele Blackdot is catering to in the first place. It's simply too expensive. Many in the community, she says, are resistant to change. 'They're worried about losing clients that they never had to begin with,' Bird says. 'There's a lot of gatekeeping in the tattoo community for a community that's supposed to be alternative and super accepting,' she adds. 'People just shit on each other all the time.' Pennington, who has been known to push back directly against criticism in YouTube comments, tells The Verge he would have been 'naïve' to think his device wouldn't generate controversy. That's partly why, early in the company's history, he brought on former pro skater and traditional tattoo artist Steve Godoy as an adviser. Godoy, who is one of the few heavily tattooed people featured in Blackdot's promotional material, co-authored Tattoo Machines and Their Secrets, one of the more popular manuals for tattooers learning the craft. Pennington is also hopeful that backing from Bang Bang, a highly respected studio, will help further legitimize his approach. As for preserving the human element, he says Blackdot is exploring a model where clients can receive a tattoo while the artist who designed it joins remotely via video. 'This kind of virtual guest spot preserves the personal connection between client and tattoo artist, but in a completely new format — one that breaks down geographic barriers,' Pennington says. Bang Bang, who has over 20 years of experience tattooing, adds that in some cases, the absence of a human artist could actually be a selling point. Some introverts and frequent tattoo collectors, he notes, might enjoy the comparably quiet, meditative experience. As for artists concerned that machines could make them obsolete, Bang Bang has some blunt advice. 'If you're threatened by this thing, then you got work to do,' he says. 'Take a look in the mirror and work hard and do something that no one else does and be unique in your own way and you'll be successful.'
