When Luke and Butch returned to main land USA and signed on with Bill Watts’ UWF, they quickly cemented their status by beating Ted DiBiase and Steve Williams for the UWF Tag Team Championship on 16 March 1986. The Sheepherders worked for Bill Watts on and off over the next couple of years, taking time out to participate in the first ever Jim Crockett Memorial Tag Team Cup where they made it to the third round. In the third round, the Sheepherders clashed with the Fantastics in an out of control brawl that ended in a double DQ. The winners of this match would have gone on to face eventual tournament winners The Road Warriors in the next round. Back in the UWF for their big "Mid South Superdome Show", the Sheepherders clashed with the Fantastics once more. This time, Luke and Butch lost in a "New Zealand Boot camp" match to the UWF Tag champs.