Former Newcastle United owner Mike Ashley has failed with an initial bid to buy Sheffield Wednesday, Sky Sports News has been told – but it’s thought he may return with a higher offer.

The bidding war for the club currently bottom of the Championship is hotting up, with the administrators running the business currently considering “credible” offers from three separate parties, with two more waiting in the wings.

One of those is understood to be Ashley, whose first-round offer was worth around £20m. However, Sky Sports News has been told the actual selling price could end up being around double that, with other bids already on the table in excess of £30m.

Any interested party has been asked to show proof that they have at least £50m in available funds, so that they can be considered a credible option, not just to buy the club, but to be able to support Wednesday in the future.

Only once that level of funds has been approved have those parties been given access to the most confidential details of Wednesday’s finances and assets.

It’s thought Ashley had no problem showing proof of available funds to the administrator.

Ashley sold Newcastle for around £300m in 2021, but he has made no secret of his desire to get back into football, and has made bids in recent years to buy Derby County and Reading – as well as being linked with a possible move for Coventry City.

The fact that he has owned a major English football club in the past, and has huge money at his disposal from his Sports Direct empire, makes him a very serious contender. But so far, his offer falls way short of some of his rivals. That may be a shrewd negotiating tactic.

The size of Wednesday’s fanbase, together with the fact that the club owns its own stadium and the Middlewood Road training ground, gives it real appeal to Ashley and to others.

While the sale price is important to get the best deal for the “football creditors” and others who are owed money by Sheffield Wednesday, it isn’t the only consideration that the administrators will give weight to. A stable and reliable business, with a credible plan and viable funds going forward are paramount, as is any buyer’s ability to pass the EFL’s Owners and Directors test.

The administrators are expected to give “preferred bidder” status – and exclusivity to try to complete a deal – to one would-be buyer by the end of next week. But there may be several late moves by interested parties between now and then, as the battle for Hillsbrough enters a new phase.

There has been no comment from the administrator Begbies Traynor, or from Mike Ashley’s representatives, when approached by Sky Sports News.