Billy Idol was cast as Smiley, but had to pull out of the role after a nearly-fatal motorcycle accident. Renny Harlin personally asked Robert Englund, who had previously worked with him on A Nightmare on Elm Street 4: The Dream Master (1988), to take over the role after Idol's accident. Idol's song "Cradle of Love" is playing when the fraternity sister takes Ford Fairlane and Zuzu Petals to her house.
Howard Stern auditioned for the role of Johnny Crunch at Andrew Dice Clay's insistence. Stern insisted the character was written with him in mind, and he didn't want to play himself, but he tried out for it anyway. It didn't work out, and Gilbert Gottfried was selected.
As with most films featuring a stand-up comic in the lead role, bits of Andrew Dice Clay's routine are in the film. They include asking the two guys in the club "What're names? Neil and Bob? Or is that like what you do?", the blabbering noise he makes after the first time he leaves Johnny Crunch's radio station, and referring to his genitals as "Stanley The Power Drill".
Fairlane comments about being banned by MTV, which banned Andrew Dice Clay for life in 1988. The ban was lifted several years later.