Hulk Hogan Blackmailed Over Sex Tape By Bubba The Love Sponge Employee

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."

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"

joem49er contributed to this article.