WWE is indeed apparently going ahead with a love triangle story line between Fandango, Layla and Summer Rae.
According to one source, WWE is looking at a possible Layla vs. Summer Rae match at the upcoming WWE Payback pay-per-view on June 1st, with Fandango serving as the special guest referee for the bout.
Apparently the idea behind that match would be to see who Fandango sides with, and further the aforementioned love triangle story.
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(Credit: Wrestling Observer Newsletter)