When Bulldozan falls behind on rent for his dojo, his landlord sends the yakuza (the Japanese mafia) to rough him up. As for Taco and Yoshi they lose a three-way match for the tag team championship to Nacho and Steven. Nacho and Steven celebrate the tag team championship victory at a bar where Yoshi shares to Taco that Bulldozan is going to shut down the dojo because he’s broke. Yoshi wants to go solo and breaks up the team. Now Taco, feeling rejected by his best friend Yoshi and ignored by his cousin Nacho, decides to turn heel and become a bad guy wrestler.
Taco adopts a new gimmick of a big powerhouse masked wrestler named Big Damn Danger (loosely based on Big Van Vader). After Big Damn Danger defeats Nacho and Steven in a two and one match, the audience riots and gets the three wrestlers banned from the arena for four years. Taco reveals to Nacho and Steven that he is Big Damn Danger and apologizes to them for ruining everything. Nacho and Steven apologize to Taco for ignoring him. Luckily, an American wrestler Dashing Lar (loosely based on Ric Flair) saw what their match and offers to contact his promoter to see if they can wrestle for American Championship Wrestling. They three agree and go back to Bulldozan’s dojo to share the big news.
Only Bulldozan’s dojo is burnt to the ground, and they discover Bulldozan was murdered by the yakuza and that the yakuza burnt down the Bulldozan’s dojo. Taco reunites with Yoshi who mourns his mentor and father figure Bulldozan. Taco shares that he, Nacho, and Steven might go to America to wrestle and that they might not be in Japan anymore. And that Taco got them banned from the local arena due to the riot he caused.
Yoshi decides it’s time to continue his wrestling solo and he also decides that he should start his own wrestling promotion to compete with the monopoly wrestling promotion in Japan. With funding from his wealthy parents, Yoshi opens his own wrestling promotion, and it becomes a huge success. Nacho and Steven are off to America to wrestle for the American Championship Wrestling as they officially signed the contracts to become a part of their roster. Taco however decides to stay in Japan and help Yoshi grow his promotion by becoming Yoshi’s in ring rival. But before Nacho and Steven go, Yoshi announces to the group that he reached out to the promoter of American Championship Wrestling and that they decided to sign an agreement to cross promote and share talent with each other.
Now Taco can go to America later to wrestle his cousin Nacho. But before Nacho goes, Taco shares a family secret with Nacho that changes everything. So that’s some idea notes I had for a possible “Nacho Libre” sequel. I don’t know if this will ever get made but just thought I pitch it. Thanks for reading!
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