On May 26, 1987, the World Wrestling Federation (WWF) was in the midst of a national expansion that relied heavily on the suspension of disbelief. The business model was predicated on “kayfabe,” the unspoken contract that the conflicts inside the ring were legitimate and that the animosity between “babyfaces” (heroes) and “heels” (villains) extended to their real lives.
The Context: The Golden Era of Characters
In 1987, the WWF roster was defined by clear moral alignments. “Hacksaw” Jim Duggan was a rising star. He had debuted in the WWF earlier that year and quickly connected with the audience through his simple, patriotic persona. He marched to the ring leading “U.S.A.” chants and engaging in brawls with foreign antagonists.
The Iron Sheik (Khosrow Vaziri) was an established former WWF World Heavyweight Champion. Although he had moved down the card from the main event status he held in 1983, he remained a top-tier heel. He was the antithesis of Duggan’s character. On television, they were engaged in a violent feud, with Duggan frequently interrupting Sheik’s matches to defend America’s honor.
Behind the scenes, the reality of the wrestling business necessitated travel partnerships. Wrestlers were responsible for their own transportation and lodging expenses. To save money and combat the fatigue of the road, performers often traveled in groups. While the unwritten rules of the business discouraged faces and heels from being seen in public together, the practicalities of the schedule often led to mixed cars, provided they were discreet.
The Stop on the Garden State Parkway
On the afternoon of May 26, the WWF roster was traveling following a television taping. Duggan and the Iron Sheik were driving a rental car down the Garden State Parkway in New Jersey. Duggan was driving; the Iron Sheik was in the passenger seat.
A New Jersey State Trooper observed the vehicle moving erratically and initiated a traffic stop. According to the police report, the trooper suspected the driver had been drinking.
Upon approaching the vehicle, the officer detected the smell of marijuana smoke. He asked the occupants to exit the vehicle. A subsequent search of the car and the individuals revealed the presence of controlled substances.
Police found a small amount of marijuana (reported as less than 10 grams) and a small amount of cocaine (approximately three grams). The Iron Sheik was also found to be under the influence of cocaine at the time of the stop.
The Arrest and the Charges
Both men were arrested on the scene. They were transported to the local police station and booked.
Jim Duggan was charged with possession of marijuana and drinking while driving (an open container was reportedly found in the vehicle). Khosrow Vaziri (The Iron Sheik) faced more serious charges due to the nature of the substance found on his person. He was charged with possession of cocaine and possession of marijuana.
The mugshots taken that day showed two men stripped of their wrestling personas. Duggan and Sheik looked like ordinary citizens caught in a legal predicament. The news of the arrest did not stay local. The Associated Press picked up the story, and it ran in newspapers across the country.
The Violation of Kayfabe
The drug charges were a legal issue, but the public relations disaster stemmed from the pairing of the individuals. To the general public and the young fanbase the WWF courted, seeing the ultimate American hero and the ultimate anti-American villain sitting in the same car was confusing.
It shattered the narrative the WWF presented on television. The incident occurred during a time when the WWF marketed itself as family-friendly entertainment. The headline “Hacksaw Jim Duggan and The Iron Sheik Arrested for Drugs” contradicted the “Say No to Drugs” campaign the company occasionally promoted and exposed the business as a performance.
Vince McMahon, the owner of the WWF, reacted swiftly. At the time, the company was under increasing scrutiny regarding drug use, and McMahon could not afford a scandal involving two high-profile stars caught with cocaine.
The Firings and the Lost Push
Upon release from custody, both wrestlers were summoned to meet with Vince McMahon. The consequences were immediate.
Jim Duggan was fired. This was a significant blow to the company’s booking plans. According to multiple sources, including Duggan himself in later interviews and autobiographies, he was being groomed for a major push. There were discussions of him winning the Intercontinental Championship from the Honky Tonk Man. Duggan was one of the most popular merchandise movers at the time.
The Iron Sheik was also fired. While his career was already on the downside compared to his championship peak, he was still a valuable asset as a tag team competitor.
The release of both men served as a message to the locker room: do not embarrass the company, and do not get caught breaking the law with your on-screen rival.
Duggan’s Return
Jim Duggan’s exile from the WWF was relatively short. He worked in independent promotions for several months. However, his popularity was such that Vince McMahon brought him back in late 1987.
Duggan returned at the Survivor Series in November 1987. He resumed his position as a mid-card babyface. In 1988, he won the inaugural Royal Rumble match (which was broadcast on the USA Network, not pay-per-view).
Despite the return, the momentum he had in early 1987 was never fully regained. While he remained a popular attraction for years, he never ascended to the main event level or held a singles championship in the WWF following the arrest. The incident effectively placed a ceiling on his career within the company.
The Decline of The Iron Sheik
The Iron Sheik also returned to the WWF in 1988, but his standing was significantly diminished. He was older and his physical condition had deteriorated due to years of mat bumps and substance abuse.
Upon his return, he was no longer a top threat. He was used primarily to put over other talent. He eventually left the WWF again, returning for brief stints in 1991 (as Col. Mustafa) and later for nostalgic appearances. The 1987 arrest is often cited as the point where his career transitioned from “legendary heel” to “nostalgia act.”
Historical Impact on the Business
The Duggan-Sheik arrest is frequently cited by wrestling historians as one of the key moments in the erosion of kayfabe. It was one of the first times mainstream news outlets covered a wrestling story that explicitly contradicted the on-screen storylines.
It forced the WWF to acknowledge, implicitly, that the performers were actors. It also led to a stricter enforcement of travel policies for a period, with agents ensuring that babyfaces and heels did not travel together to avoid similar public relations issues.
