Michaels' title reign colorfully ended at the 1996 Survivor Series in November, where he lost to Sycho Sid, his former bodyguard, at Madison Square Garden in a face vs. face match. This match was notable for the New York fans cheering for Sid when he hit both Michaels and Jose Lothario with a television camera and cheering again when he won the match and championship. A flu-ridden Michaels recaptured the belt from Sid in January at the 1997 Royal Rumble in front of his hometown fans in San Antonio.
Michaels was supposed to defend (and lose) his title at a WrestleMania 13 rematch with Bret Hart but he gave up the title on a special episode of RAW dubbed Thursday RAW Thursday[1], broadcast live on the USA Network on February 13, 1997. This speech was regarded as controversial, as Michaels was alledgedly unwilling to lose to Bret Hart at WrestleMania. Michaels had been told by doctors that a knee injury was bad enough to have to retire, and knowing that Michaels' knee was bad, Bret Hart mapped out a novel ending for their planned WrestleMania match: Hart would catch Michaels' right leg as he attempted to execute his superkick finisher and twist it. Michaels' leg would thus 'break', complete with planted 'snapping' sounds coming from under the ring. The ending would allow Michaels to 'lose' the title without quitting or being pinned, and also would allow understandable time out.[citation needed] In the speech, Michaels contemplated thoughts of retirement and stated that he "had to find his smile again", which he had "lost" somewhere down the line. In the end, Bret Hart resumed his feud with Steve Austin for WrestleMania 13, and Michaels did color commentary at the event.
After knee surgery by Dr. James Andrews, he miraculously returned a few months later, briefly teaming with Steve Austin to win the WWF Tag Team titles. However, after a real life backstage fight with Bret Hart, Michaels quit the WWF (Michaels maintained in his autobiography that his punishment was more severe than Hart's), until Vince McMahon convinced Michaels otherwise, and gave him the role of a heel.
At SummerSlam 1997, Michaels officiated the WWF title match between WWF Champion The Undertaker and Bret Hart. The match ended in controversial fashion, with Michaels nailing Undertaker with a chair (unintentionally, as he was aiming for Hart after Bret spat in his face). Michaels was then forced to award the title to his nemesis, Hart, setting the stage for their match at Survivor Series.
Michaels' striking of the Undertaker with a chair began a feud between the two men. In October, at In Your House: Badd Blood, Michaels and Undertaker participated in the very first Hell in a Cell match, which saw Michaels falling off the side of the 15-foot high structure through a table. Michaels won the match with the help of the debut of the Undertaker's brother Kane.
In the summer, Michaels joined forces with real-life friend, Hunter Hearst Helmsley and Hunter's then-girlfriend, Chyna to form D-Generation X. The group would engage in rebellious behavior, such as pointing to their crotches and telling fans to "Suck It". Moving away from the family-oriented product, this marked the beginning of the WWF Attitude Era. Michaels also began re-feuding with Bret Hart's reformed The Hart Foundation, which was now a pro-Canada stable. Michaels would taunt The Hart Foundation and Canada by engaging in acts, such as blowing his nose with and humping the Canadian Flag. In his book, Heartbreak & Triumph, Michaels claims the flag desecration was Bret Hart's idea.
Michaels' feud with the Hart Foundation culminated in a title shot at the 1997 Survivor Series against Bret Hart in what is thought to be the most controversial match in wrestling history. Michaels came out of this match, known "affectionately" by fans as the Montreal Screwjob, as the WWF World Champion.
Michaels was supposed to defend (and lose) his title at a WrestleMania 13 rematch with Bret Hart but he gave up the title on a special episode of RAW dubbed Thursday RAW Thursday[1], broadcast live on the USA Network on February 13, 1997. This speech was regarded as controversial, as Michaels was alledgedly unwilling to lose to Bret Hart at WrestleMania. Michaels had been told by doctors that a knee injury was bad enough to have to retire, and knowing that Michaels' knee was bad, Bret Hart mapped out a novel ending for their planned WrestleMania match: Hart would catch Michaels' right leg as he attempted to execute his superkick finisher and twist it. Michaels' leg would thus 'break', complete with planted 'snapping' sounds coming from under the ring. The ending would allow Michaels to 'lose' the title without quitting or being pinned, and also would allow understandable time out.[citation needed] In the speech, Michaels contemplated thoughts of retirement and stated that he "had to find his smile again", which he had "lost" somewhere down the line. In the end, Bret Hart resumed his feud with Steve Austin for WrestleMania 13, and Michaels did color commentary at the event.
After knee surgery by Dr. James Andrews, he miraculously returned a few months later, briefly teaming with Steve Austin to win the WWF Tag Team titles. However, after a real life backstage fight with Bret Hart, Michaels quit the WWF (Michaels maintained in his autobiography that his punishment was more severe than Hart's), until Vince McMahon convinced Michaels otherwise, and gave him the role of a heel.
At SummerSlam 1997, Michaels officiated the WWF title match between WWF Champion The Undertaker and Bret Hart. The match ended in controversial fashion, with Michaels nailing Undertaker with a chair (unintentionally, as he was aiming for Hart after Bret spat in his face). Michaels was then forced to award the title to his nemesis, Hart, setting the stage for their match at Survivor Series.
Michaels' striking of the Undertaker with a chair began a feud between the two men. In October, at In Your House: Badd Blood, Michaels and Undertaker participated in the very first Hell in a Cell match, which saw Michaels falling off the side of the 15-foot high structure through a table. Michaels won the match with the help of the debut of the Undertaker's brother Kane.
In the summer, Michaels joined forces with real-life friend, Hunter Hearst Helmsley and Hunter's then-girlfriend, Chyna to form D-Generation X. The group would engage in rebellious behavior, such as pointing to their crotches and telling fans to "Suck It". Moving away from the family-oriented product, this marked the beginning of the WWF Attitude Era. Michaels also began re-feuding with Bret Hart's reformed The Hart Foundation, which was now a pro-Canada stable. Michaels would taunt The Hart Foundation and Canada by engaging in acts, such as blowing his nose with and humping the Canadian Flag. In his book, Heartbreak & Triumph, Michaels claims the flag desecration was Bret Hart's idea.
Michaels' feud with the Hart Foundation culminated in a title shot at the 1997 Survivor Series against Bret Hart in what is thought to be the most controversial match in wrestling history. Michaels came out of this match, known "affectionately" by fans as the Montreal Screwjob, as the WWF World Champion.
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