The Sex Pistols were the ones asking BR to tour with them. Greg wasn't "too interested in or excited about touring with any of those types of bands"[1], though.
Bad Religion played a few shows with the Sex Pistols on their reunion tour "Filthy Lucre". The first show was in Finland on June 21, 1996, about which The New York Times wrote that the audience liked BR and the Leningrad Cowboys better than the Pistols. In Brazil, Greg said onstage that when he started to listen to the Pistols, he thought that if Johnny Rotten can sing he could sing too, but now he knows that Rotten can't sing and he can.
Greg: "That's pathetic. That's a total freak show. The thing that made me maddest about it was that they had surrounded themselves with mainstream rock and roll people who were treating the band as though they were untouchable. They were treating the bands around them as if they were pieces of shit."
After the show in Finland guards put up pieces of board over BR's tour bus windows so they couldn't see the Pistols coming off stage. Bobby filmed that and Greg commented: "That was the end of the Sex Pistols tour as far as I was concerned. The first day it was over. It's just really pathetic that they would allow things like that to happen."
On the next day (their second show with the Sex Pistols) Greg said: "I was being very open-minded about the whole thing. I was giving them the benefit of the doubt. But (...) what I saw, for the people who were handling them it was like a big rock tour. It really turned me off (...). I wouldn't even be sure that the band was happy about it, it was just the people handling them handling it wrong, I think."
Jay: "They were kinda dicks until the last few shows, and then Jonsey was cool. So we hung out for a bit. I didn't really think much of it. I was excited for about .005 seconds."
About the Sex Pistols' performance Jay said: "I watched it. The scores would range about - from 1 to 10 - 1 for the first two or three songs getting up to about maybe 4 towards the end. They got it together. I mean, it's their first show in, what, twenty years."
While Greg used to like them as a kid because they "sang with heart", he had a different opinion later on as "now they sing just like a puppet show" and "are getting away from the original sentiments and that's a negative cynicism that I don't appreciate."
In 1997 Greg said that he never hated them but just thought the last tour was a joke.
On April 20, 1990 BR covered their song "Problems".