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First, it was a bad place to do the turn. The arena was full of marks/casual fans and while I usually like them (hence the username), it's a bad place to do a turn that requires a lot of knowledge beforehand.
That aside, I think it could work. If, like some people say, Mick Foley turned on Tommy Dreamer because he's actually FOR sports entertainment (made him rich, extended his career) then that makes him a heel to ECW fans. So when ECW starts, they'll have a natural heel.
Because of his history, it's really hard to get Mick Foley booed by smark fans. However, I agree with the WWE that Foley's face character is stale (whether it's funny Foley or "extreme" Cactus Jack, it's still stale). So the only way to make him a heel is to have Foley side with "sports entertainment."
I think a great way to further the turn (though they probably won't do it), is to book Foley in a match at ONS2. But Foley insists that he's not going to destroy his body for these internet nerds, and refuses to use weapons during the match. He should also pull out a cute Mr. Socko just to mess with the crowd. That way, he doesn't give a crowd any reason to mark out for him, and cements his status as a heel.
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