Continuity mistake: At the end of the final match, the announcement is made it's the first time in history the defending champion kept his title. Yet in Karate Kid 1 Johnny Lawrence had already won the championship twice and was there for his 3rd time.

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.
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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.
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Chosen answer: First he could have just been out of practice, but the point they made in the movie was that his moves were old, so they knew how to counter the things he did in the past to win.
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