At the end of the 1983 season however, Watson was dropped by McLaren and subsequently retired from Formula One. Negotiations with team boss Ron Dennis reportedly broke down when Watson asked for more money than dual World Champion Lauda was earning, citing having won a GP in 1983 where Lauda did not. Dennis instead signed Renault refugee Alain Prost for comparatively nothing (since he was already under contract to Renault but was fired for 1984). He did return for one further race two years later, driving for McLaren in place of an injured Niki Lauda at the 1985 European Grand Prix at Brands Hatch, in which he qualified 21st and placed seventh in the race (Lauda had injured his wrist in qualifying for the previous race at Spa, forcing him to miss that race also). Watson raced with Lauda's race number of "1" (the Austrian having won the World Championship). This was only the second occasion since that a driver other than the reigning World Champion has raced car number 1 in a World Championship race, the other being Ronnie Peterson when the system first began, as reigning World Champion Jackie Stewart had retired upon the conclusion of the 1973 season.