Watson featured prominently during the 1991–92 season as Kevin Keegan returned to Newcastle and relegation to the Third Division was avoided. During his seven years at the club, he wore a jersey with every shirt number 2–11 at least once, earning a reputation as a key all round capable footballer integral to "The Entertainers" style of play. He came on as a 77th-minute substitute at Wembley Stadium in the 1998 FA Cup Final, in which Newcastle were beaten 2–0 by Arsenal.