On 13 November 2010 Steve Watson was appointed as the new Development Coach at Football League One side Huddersfield Town, joining up with his ex-Newcastle team-mate Lee Clark. After Clark was appointed as Birmingham City manager in August 2012 he took Watson with him as a coach. The pair were sacked on the 20th October 2014. Watson's Twitter account states that he is the founder of the company 'Pro Sport Apps'.