When introducing Miyagi-Do, the ring announcer mentions that the previous year the Dojo made it to the final. Miyagi-Do didn't compete the previous year. Despite Robby Keene being trained by Daniel, due to a falling out before the tournament, he fought "unaffiliated".
Carrie Underwood would not have been allowed on the mat wearing heels if this were real. The referees (as opposed to in this episode) are required to wear certain types of shoes. Other than that, shoes are not permitted on the mats.