Everyone has a different version of what happened that night in Montreal, but from where I'm sitting, it's quite simple.
We all know what Vince McMahon is like. He's an evil, dictatorial tyrant who rules WWE with an iron fist. In 1997, he was about to lose Bret Hart to WCW, and wanted Shawn Michaels to be his new star.
Therefore, at Survivor Series '97, Vince did not want Bret to leave Montreal and possibly WWE with the belt around his waist, so he took every precaution to ensure that such a result did not happen. Of course he hoped that Shawn would be able to overcome the Hitman on his own, but McMahon is a shrewd businessman and knows never to take any chances. So, upon witnessing the beating that Shawn took at the hands of Bret at the beginning of the match - in fact, before the bell even rang - Vince realized that he may have to resort to underhand tactics. The sanctity of the WWE Title was at stake, and the elevation of his next big superstar to replace Hart, the Heartbreak Kid.
So when the opportunity presented itself, and Michaels had the Hitman locked in the Sharpshooter, Vince made his move. Knowing that Hart knew better than anyone else how to reverse his own signature hold, McMahon had to move fast - there was little time for discretion. He quickly made his way to ringside and signalled to referee Earl Hebner to call for the bell, announcing a submission on the part of Bret Hart. Hebner, with a family to support, had to obey his boss' order, and did as he was told, despite never actually hearing Bret submit.
Vince had succeeded in preserving the security of the WWE Championship, getting the belt around the waist of the Heartbreak Kid, but had opened himself up to criticism. Hart, obviously upset by the screw job, was very vocal about the deception, and left for rival WCW earlier than was originally planned. Meanwhile, in WWE, McMahon had his new superstar in the form of reigning champion Shawn Michaels. However, both fans and wrestlers alike were now aware of a different side to the mild-mannered promoter - a revelation which would lead to numerous confrontations with the anti-authoritarian Stone Cold Steve Austin in the coming months and years. Vince would try to derail Austin's ascent at an early stage with the use of his new star HBK, but unfortunately for McMahon, the Rattlesnake's vendetta against the selfish, double-crossing owner had only just begun.
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