Megson returned to his old workplace to watch Sheffield Wednesday's 2-2 draw with Hull City on Saturday.
Megson was present as Wednesday drew 2-2 with Hull City on Saturday - the first time he has returned to his old club since his February 2012 sacking.
But despite the strides made on the pitch since then - when the Owls were third in League One - Megson compared the club's 'tired' home to that of an old person.
When asked about his Hillsborough experience on this week's The Ref Show, he replied: "Disappointing to be honest with you.
"Not the game - that’s nothing to do with me. When I was manager at Wednesday, I’m in the dressing room, at the training ground, I never saw the stuff that was going on off the pitch - in terms of behind the scenes.
"It looks tired. It’s like an old person that’s been living in a really big house and suddenly can’t afford to, but they don’t want to move so they don’t bother with the top level and they don’t bother with the conservatory, they just live in two or three rooms and that’s the bit you see.
"That’s what I felt about Sheffield Wednesday, well the bit I saw on Satutday. It’s not good enough for a club like that."
Wednesday have finished in the play-off positions in each of the past two campaigns, however, Michael Dawson's stoppage time equaliser for Hull left Carlos Carvalhal's side eight points off the top six in 12th-place.
And Megson, who is some fans' choice to replace Carvalhal in the Owls hotseat, added: "The biggest single thing (about Wednesday) is the support. It's the only thing that is (Premier League) standard."
Megson, who has been linked with the Hull City position vacated by Leonid Slutsky despite Saturday's point, later admitted that his recent spell in temporary charge of West Bromwich Albion has given him "a taste" for management.
Asked about Hull, however, the 58-year-old added: "It was an entertaining game but I’m going just for keeping my hand in.
"I watch games basically looking at players, looking at how the opposition’s going to play, looking at other teams. I didn’t go the other day because I’m a (Sheffield Wednesday) supporter, I went the other day because I would like to get back into football and I want to know what’s going on around the place."