Written by Reuben Leder
As a promotion for his new radio station, a DJ offers a $100,000 prize to anyone who can figure out clues to a “pirate riddle” that are scattered everywhere up and down the beach. Matt and CJ get caught up in the madness to win, while Mitch and the other lifeguards have their hands full rescuing people who will do anything to win.
When Kaye Morgan opens her new restaurant on the beach, The Sandy Cay Cafe, she promotes the grand opening by having the new radio station KGAS do a live broadcast. Unfortunately, the DJ, Larry “Loomin'” Large, hasn’t told anyone that he is also promoting the station by offering to give away a gold pirate coin worth $100,000. Clues to the whereabouts of the coin are scattered up and down the beach, naturally attracting thousands more people to the beach than normal. When Mitch complains to Larry about not giving fair warning, he replies that all the proper permits were filed weeks before.
The huge influx of treasure hunters causes great strain on the Baywatch lifeguards, as they attempt to rescue people who have gotten themselves into al kinds of crazy situations, in order to try to win the $100,000. Kaye is worried that this day will turn into a major disaster, so she pulls the plug on Larry, who then promptly sets up shop on the pier. Meanwhile, Mitch tries to get through to City Hall in order to find out why they weren’t notified of Larry’s contest.
To make matters worse, Matt and CJ catch money fever, and attempt to discover the clues for themselves in some nearby caves. There they meet a supposedly foreign tourist, Basel Frankakos, who has figured out the pirate riddle. But before he can leave to claim the huge prize, two toughs appear out of the darkness and tie him up, along with Matt and CJ and steal the clues. With Mitch and Garners help, Basel, Matt and CJ escape the cave, but now everyone is involved in a “mad, mad, mad, mad world” chase to Larrys booth to claim the prize.