Obviously he didn't have enough time.
From what I remember from the shoot, by the end of Watts' employment, he used to bring Russo into the booking/creative meetings with McMahon and everybody. This is the time where Russo was writing for WWF magazine as Vic Venom. Russo said out of the blue, Watts was gone.
I guess it never dawned on Russo that it wasn't so much that Watts took him "under his wing" because he saw potential in him, as it was that Watts thought the editor of the magazine should know where the storylines are going, to keep the magazine as current as possible.