Championship outfit Wednesday are looking for a new manager at the moment following the dismissal of Stuart Gray last week.
Gray was sacked by the Championship club after 18 months in charge on Thursday evening.
The 55-year-old took charge of the Owls in November 2013 following the departure of Dave Jones - first on a caretaker-basis and was then given the role full time in January 2014.
The former Nottingham Forest and Aston Villa midfielder led Wednesday to a 16th-placed finish in the Championship in the 2013-14 season.
Wednesday ended up 13th in the league table in the recently concluded 2014-15 campaign with 60 points from 46 matches.
The dismissal of former Southampton midfielder Gray came out of the blue, as until the announcement was made there was no sign that the Englishman would be let go.
Former Wednesday boss Laws believes that Gray’s successor will find it tough to guide the Owls to the top flight of English football.
“Sheffield Wednesday, due to the financial constraints on the club for the last decade and longer, have always been at the bottom end of the Championship,” the former Middlesbrough and Nottingham Forest defender told The Star.
“They had the spell in League One and since getting back out I think they have over-achieved because of the budget successive managers have had to work with.
“It’s impossible to get the club out of that and to compete under those circumstances, you only have to look at the big budgets they have been competing against.”