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A new wrinkle has developed in the ongoing Hulk Hogan-Gawker-sex tape scandal, according to CBS affiliate WTSP-10 in Florida.

Hogan, who was filmed having sex with Heather Clem, the wife of former TNA talent and shock jock Todd “Bubba the Love Sponge” Clem, was blackmailed by Bubba’s co-worker, Matthew Lloyd, who worked with Bubba under the name of Spice.

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Lloyd then attempted to blackmail Hogan, as heard in an FBI taped conversation between Lloyd and Hogan’s attorneys:

“Wants to start negotiating, 1 million dollars,” said Lloyd’s attorney. Two weeks later, the lawyer changed his tune, saying, “I have authority bottom line 400,000,” before finally agreeing to “3 payments equaling 300-thousand.”

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Hillsborough State Attorney Mark Ober however, is refusing to prosecute in the case, saying he isn’t sure that he could secure a conviction. Bubba The Love Sponge stated that he thinks his wild personality and political motivations are preventing a prosecution.

Hulk Hogan was fired by WWE earlier this year when a racial tirade from the stolen tapes surfaced.

Update 11/18 5:15 PM ET: Fixed the text to read “Hogan, who was filmed having sex with Heather Clem, the wife of former TNA talent and shock jock Todd “Bubba the Love Sponge” Clem”

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