Opening 1994, Funaki faced another Dutch martial arts exponent in the form of Bas Rutten. Masakatsu led him to the ground and sieged Rutten's guard, and after the Dutchman got distracted after an accidental illegal strike, Funaki caught his leg and executed a toehold, making his opponent submit. Later in the year, Funaki got his revenge against Ken Shamrock just days before the latter's participation in the Ultimate Fighting Championship, choking him out with a rear naked choke. In December, Funaki took part in the tournament for the first King of Pancrase title. He submitted Todd Bjornethun at the first round with a sequence of yoko-tomoe-nage into mount to armbar, and then faced Vernon White in a longer match, with Funaki making a wide usage of triangle chokes and sweeps in order to get a top wrist lock. Finally, Funaki faced Ken Shamrock for a third time at the finals, but although Masakatsu was able to fend Ken off for several minutes, he was mounted and submitted with an arm triangle choke, the same hold Shamrock had used in their first match.