Jim makes The Muppet Show in the 1970’s, shaping the show as a vaudeville comedy act. Meanwhile, Jim gets experience seeing the first season of Saturday Night Live up close and sees Lorne running around like a chicken with its head cut off trying to put on a show using live actors.
Obviously, Kermit is a self insert character of Jim himself. But, could Jim have included a bit of Lorne into Kermit at the time to portray a show runner at wits end due to his cast?
Maybe both come from a third, earlier source?