Upon Goelz's return to California, he learned that he had been replaced by his electronics employer, so he set up shop creating puppets and videos for industrial videos. Eight months later, in the fall of 1974, Henson offered him a full-time position as a builder/designer, and occasional performer in specials, while still allowing him to keep his industrial clients. Returning to New York, Goelz began work on The Muppet Show: Sex and Violence, for which he built the new host character, Nigel. Working from sketches by Jim Henson, Michael K. Frith, and Bonnie Erickson, he also built Animal, Floyd Pepper, and Zoot, the latter becoming his first major character.