From what I've read about it, it started off as a worked shoot that turned into a real shoot. Hulk Hogan, Eric Bischoff and Vince Russo agreed that Jarrett would lay down, Hogan would act confused and pin him, then leave with the belt. What was supposed to happen after (storyline wise), is there would be a tournament or something to declare a new champion, which would have ended up being a heel champion. Then eventually Hulk Hogan would make his triumphant return as the "real" champion and challenge the "fake" heel champion. All of this to put Hogan back on top eventually.

Russo basically decided to go along with it up until Hogan left with the belt. Then he did the hate speech about Hulk Hogan and the politics, and declared the Jeff Jarrett vs. Booker T match that same night to decide a new champion right then and there.

Hulk and Bischoff did not know Russo was going to do this, and that is why Hulk legitimately sued WCW for defamation and stuff and I don't think appeared on WCW ever again.

Russo claims something like he misunderstood the original plan and thought his plan is what they agreed to, but my opinion is Russo figured "screw this" to the Hogan getting back on top and did his own thing to get the title on Booker T.

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