Reading the article, it speculates that Needham may fall foul of the following rule:
“A recognised football body, club, official, team official, other member of team staff, player, match official or other person under the jurisdiction of the Scottish FA shall, at all times, act in the best interests of Association Football.
“Furthermore such person or body shall not act in any manner which is improper or use any one, or a combination of, violent conduct, serious foul play, threatening, abusive, indecent or insulting words or behaviour.”
I don't think anyone has suggested what he said is illegal, just ill-advised.