Plot hole: The tournament that Daniel is in is the All Valley under 18 tournament, but we already know that he has graduated from high school and was about to attend college. His birthday is in December, so he must already be 18.
The Karate Kid III (1989)
Plot summary
Directed by: John G. Avildsen
Starring: Ralph Macchio, Pat Morita, Robyn Lively, Thomas Ian Griffith
Daniel stops learning from Miyagi and starts learning from a new master.
More mistakes in The Karate Kid III
Terry Silver: A man can't stand, he can't fight.
Trivia: When Daniel is persuading Myagi to use his college money to buy a store for selling Bonsai trees, he takes a wad of cash, smells it, and says, "Hmm. Looks like money.smells like money." Ralph Macchio has practically no sense of smell at all, so just for fun he always makes a point to smell something in every movie he does.
Question: How did Kreese lose his dojo?
Answer: Kreese strangled Johnny, after the latter lost to Daniel. This proved just what kind of teacher, as well as person, Kreese is. His students after seeing this, realised just what Cobra Kai puts in their head, as well as just what kind of person and teacher Kreese is. Specifically, after seeing Kreese strangle Johnny, they thought, "I WON'T be your student, if you're gonna treat me like that!" Therefore, they left, and Cobra Kai went out of business.
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Answer: He lost all his students after he flipped out on Johnny. Without students, he couldn't pay his bills.
Greg Dwyer