At the beginning of this film, is Rocky still the champion? What happened to his status when he decides to fight Drago? The quick scenes of the newspaper clippings are a bit confusing got me. Does he lose his title because he decides to fight Drago?
Rocky was still ranked no. 1 (Heavyweight champ) at the start. He hadn't fully retired yet. He gave up his belt to fight Drago, so whoevers ranked 2 and 3 have to duke it out, to become champ. So Union cane would've won it that way.
Rocky is still champ at the beginning of Rocky IV but has to forfeit the title to fight Drago, because the boxing commission won't sanction the fight. In the original trailer, there's a quick clip from the boxing commission meeting that got edited out of the final movie. You hear the commissioner shout (about Drago): "He's had one professional fight, and one man is dead!" This is evidence to me that the boxing commission wanted nothing to do with Drago. Anyway, at the beginning of Rocky V it is stated that Union Cane will be fighting for the vacant championship (which Rocky surrendered to get his revenge).