Drago would not have been immediately punished. On the contrary, the Soviets would have put a positive spin on his defeat to save face. They would have told everyone how fantastic it was that a Soviet-trained athlete who's never competed professionally was able to almost go the full distance against the famous champion Rocky.
Drago would therefore have still been celebrated in the immediate aftermath. But he would have later been put permanently out of the spotlight to forget the real embarrassment that he lost. He wouldn't have been shot or imprisoned or anything like that, because if word got out of any severe punishment, then that would effectively be an acknowledgement of how bad his loss was actually considered.
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