Rico's problem is he tries to hard to be gay. When he was Mr. hair dresser he didn't say he was gay but the crowd loved to chant "you're gay" at him and he would play off it and be offended. Now if they chant "you're gay" he shrugs it off like it's nothing and he enjoys it which takes the fun out of it.
Besides, people have already done the gay gimmick better. Gorgeous George, Adonis, Goldust, Lenny, Lodi, the Clique, etc.