Alan Ball left The Dell at the end of the 1994–95 season, to be replaced by Dave Merrington. The 1995–96 season was a poor one for both the Saints (finishing in 17th place, just above the relegation zone) and Watson, with only three goals from 25 league appearances, with the goal-scoring being shared by Matthew Le Tissier and Neil Shipperley, with seven league goals each. For 1996–97, Saints appointed a new manager in Graeme Souness who brought in Egil Østenstad as first choice striker to play alongside Le Tissier, leaving Watson to make only the occasional appearance. His final appearance for The Saints was in a humiliating FA Cup defeat at Elm Park, Reading on 4 January 1997.