The chief executive was extremely proud of the Schwarzgelben and felt they would have progressed had they taken the tie into extra-time but slammed the referee after the game
The Schwarzgelben took a two goal lead through Marco Reus' brace as they looked to claw their way back into the tie following Madrid's 3-0 first-leg win. However, the German side couldn't find the crucial third goal which would send the tie into extra-time and crashed out of the competition.
Despite their elimination, Watzke was full of praise for the Bundesliga giants but criticised the referee for a substandard performance in the important match.
"My team did great," Watzke said after the game. "It was a fantastic experience. Nevertheless we all are a bit disappointed. We had fantastic chances in the second half, mainly Henrikh [Mkhitaryan]. I trusted in the team.
"The only one who wasn't on the level was the referee. For example, I saw a clear assault by [Sergio] Ramos against [Robert] Lewandowski.
"He made a lot of wrong decisions. I don't want to say he disadvantaged us but the performance was simply bad.
"I'm sure Madrid would have been dead, if we would have scored the third goal."