25 years after the song's release it was banned from public broadcast in Canada after one person complained about it being homophobic. The original version included a description of a singer as "that little faggot with the earring and the make-up" plus two other uses of the word "faggot," although a cleaned-up edition was made available, Oz-FM in Newfoundland played the first edition in February 2010 at 9:15 at night. The result was a single complaint and the Canadian Broadcast Standards Council ruled that the unedited version of the song was unacceptable for air play on Canadian radio stations because it "refers to sexual orientation in a derogatory way."

Knopfler has pointed out the song was written from the viewpoint of a stupid character who thinks musicians make their "money for nothing" and his stupidity is what leads him to make ignorant statements. Speaking in late 1985 to Rolling Stone the Dire Straits songwriter expressed his feelings about people who react angrily to the song. He said: "Apart from the fact that there are stupid gay people as well as stupid other people, it suggests that maybe you have to be direct. I'm in two minds as to whether it's a good idea to take on characters and write songs that aren't in the first person."

Sense finally prevailed on August 31, 2011 when the Canadian Broadcast Standards Council put an end to the ban and allowed individual radio stations to once again decide for themselves whether to play the classic rock tune.