Several weeks after winning the Intercontinental Heavyweight Championship, Steamboat asked WWF owner Vince McMahon for some time off to be with his wife Bonnie, who was expecting the birth of their first son, Richard, Jr. This did not sit well with WWF management as he had been groomed to become a long-term champion. The decision was made by WWF management to punish Steamboat by having him initially drop the title to Butch Reed, but Reed did not show up that night, so he dropped to The Honky Tonk Man on the June 15 edition of Superstars; his son was born a month later. Steamboat came back in time for the Survivor Series in November 1987. WWF management was still bitter over his impromptu sabbatical from his first WWF run, however, and he was not pushed or given any meaningful feuds. (Steamboat himself has implied in interviews that he was being punished for one-upping the Hogan-Andre main event at WrestleMania III.) After defeating Ravishing Rick Rude by disqualification at 1988 Royal Rumble, Steamboat was entered into the tournament for the vacant WWF World Heavyweight Championship at WrestleMania IV in March 1988. On WWF television prior to the match, Steamboat appeared in a vignette where he stated that he hoped Randy Savage would win his first round match, thus setting up a rematch of last year's WrestleMania match and "one more classic confrontation". However, Steamboat would lose to his first round opponent Greg "The Hammer" Valentine. Although television segments were shot immediately after WrestleMania IV that made it appear that Steamboat would be facing Valentine in a series of matches, Steamboat left the WWF shortly thereafter.
