Ladd retired from wrestling in 1986 due to recurring knee problems. He then returned to the WWF as a color commentator, calling the 20-man battle royal at Wrestlemania 2 (which featured NFL players) and then earning a trial run doing commentary for various shows, including the April 1986 show at Madison Square Garden. He was also used as a fill-in for matches on syndicated programming such as "WWF Championship Wrestling". Ladd also teamed with Gorilla Monsoon and Johnny Valiant in the broadcast booth during The Big Event at C.N.E. Stadium in Toronto, Ontario. Ladd, Monsoon, and Valiant were the original three man team for the first few weeks of "WWF Wrestling Challenge", before Ladd was replaced by Bobby Heenan and Valiant's role was reduced significantly to only calling matches when Heenan had to be at ringside for one of the wrestlers he managed. Following this, Ladd quietly left the WWF.