He also had a movie to promote in real deal theaters and being a heel turns off his real fanbase (kids...Brody) when they are needed to drag their parents into the movie. His merch sales were bonkers ahead of everyone too, so turning off the spigot before they ran the well dry would have been foolish on all sides.
And if they keep Macho as champ and run the program to Summerslam before Hogan wins the belt (which many like to fantasy book), then Hogan's doing all the talk shows for the movie, without the title and with a failed PPV main event title match to explain away.
Or you switch everything up and ignore the millions of dollars on the table and run Mania with Hogan vs Bossman cage blowoff and Warrior vs Savage and kill off Warrior's upward momentum.
I do wish we saw a Rude/Savage feud with Rude trying to molest Liz although it would be an exact repeat of the Roberts angle from 88.
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I'm listening to the Center Stage pod and they say Owen is talking to the WWF (and WCW) about coming in (Jan 90) It's not out of the realm of possibility that he might have gotten Anvil's spot and we get the Hart Bros vs Demos at Summerslam.