I think he was just backstage at the ppv.
Man, that stupid reaction of hogan in that video maked me remember just how much I hated him.
He was part of a storyline. Remember the main event (some has stated that this was the worst main event in WWF history), Diesel vs. King Mabel for the WWF title. During the buildup, Luger was gone. So his "Allied Powers" partner, the British Bulldog teamed with Diesel to take on King Mabel and Sir Moe.
Bulldog turned on Diesel and became a heel. Mabel then started boasting about his "Royal Plan" to win the title from Diesel. Bulldog was part of that plan. He was supposed to jump Diesel during the match, to help King Mabel get the belt.
But, Luger came back and started scrappig with the Bulldog. Moe got beat up earlier in the match, leaving King Mabel to go one-on-one with Diesel who, of course, retained his title.
That was the last we saw of Luger. Then, he's on Nitro the next night.