Watson played the ruck-rover in Essendon's 1984 and 1985 grand final victories. He was made captain in 1989 and held that position until 1991, before retiring from the game due to the injury problems that had plagued the later part of his career. In the 1992 pre-season draft, Watson was recruited by the West Coast Eagles even though he had signalled his intention to retire. He never played a game for the club, instead continuing a commentary role with the Seven Network for 1992, which included working as a boundary rider in that year’s grand final which the Eagles won.