During 1987, in an attempt to remain relevant and survive, Gagne renewed a relationship with Memphis-based promoter Jerry Jarrett and the CWA and even allowed Mid-Southern territory legend Jerry "The King" Lawler to win the AWA World Title from Hennig in May 1988. This was after the AWA flirted for months with the idea of giving Greg the belt, even awarding the belt to Gagne at a couple of house shows, only to return it to Hennig on a technicality. It was widely speculated that the idea of the younger Gagne as heavyweight champion did not play well with AWA fans, who seemed more interested in the involvement of Verne and Larry Hennig in the feud than they did with Greg actually winning the title, so Verne decided to go with Lawler instead. Michaels and Jannetty would drop the titles to Badd Company around that same time.