If we take this story at face value for the purposes of discussion, it has real implications for the DoF model.
Taking the individual characters out, essentially we have an Owner saying to the Head Coach that he has reservations about playing an Academy product because he's not quite good enough. When the Head Coach queries the Owner's credentials for making this judgement, he defers to the DoF. It is then suggested by the DoF & Owner that a sale of the Academy player to Leicester may be a better route for the club.
The Head Coach refuses to back down, insisting on selecting the player. He has a good run in the team until the end of the season, which lays the foundations for what will be a stellar career, becoming the best player at the club and England captain.
Now, according to the DoF model, it is the DoF who is the custodian of the medium & long term future of the club. But here it is the Head Coach who, in challenging the judgement of the DoF, is acting in the best interests of the club.
My point is that management structures may look great on a whiteboard, but ultimately it is the judgements of individuals about eg the potential & professionalism of players that is most important.
Sherwood is a bit of a plank, and Levy entrusted Franco Baldini with spending the Bale money because of his supposed expertise in evaluating players. Apart from Eriksen, it can be argued that none of Baldini's Magnificent Seven justified the money we spent on them.
Meanwhile, the bloody-minded stubbornness of Sherwood kicked in. He gave Harry Kane, a player who cost the club nothing, a proper run in the team, and the player's own determination, talent & will to succeed ultimately did the rest.