‎Mike Ashley suffers £176m earnings loss before latest Sheffield Wednesday developments

Mike Ashley has parted with a vast sum over the last year, with the former Newcastle United owner now weighing up a move to buy Sheffield Wednesday.

The 61-year-old billionaire, who built his wealth through founding Sports Direct before purchasing Newcastle in 2007, was required to pay a significant tax bill as takeover speculation gathered pace. According to the most recent The Sunday Times Rich List, his fortune stands at £3.12bn.

Ashley’s retail empire reports it has contributed more than £1bn in corporation tax since 2007, although his overall HMRC payments dipped slightly year-on-year. Even so, he still paid £175.6m in tax over the past 12 months, placing him ninth on the latest Sunday Times Tax List with only eight individuals or families contributing more across the UK.

Having sold Newcastle in 2021 for a reported £300m, Ashley could now be preparing for a return to football ownership following links to Wednesday. News of his hefty tax outlay emerged just weeks before the Yorkshire club’s relegation from the Championship was confirmed.

A 2-1 defeat to rivals Sheffield United sealed Wednesday’s drop to League One amid ongoing financial turmoil. Reports earlier this week indicated that Ashley’s representatives are due to hold discussions with the club’s administrators over a potential deal.

That opportunity arose after a £47.8m bid led by James Bord collapsed, potentially opening the door for Ashley to end his five-year absence from club ownership. Former owner Dejphon Chansiri, removed last October when the club entered administration, was heavily criticised in an open letter from the Bord consortium.

The statement accused previous leadership of years of mismanagement and chronic under-investment, arguing that despite their initial enthusiasm, the scale of the club’s issues made their binding offer untenable. They expressed regret at stepping away but reaffirmed their admiration for Wednesday and its supporters.

Currently sitting on just one point after suffering an 18-point deduction, Wednesday return to action on Saturday when they host Southampton.