Shock financial news could hand unexpected transfer boost to Newcastle United and Arsenal

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There was some shock news from one of Newcastle United's Premier League rivals on Tuesday.

The revelation Aston Villa have reported losses of around £120m could present a big opportunity for Newcastle United as the Magpies prepare for the summer transfer window.

The Champions League contenders have enjoyed a remarkable season on the pitch as the transformation overseen by Unai Emery has taken them into serious contention for a top four place. However, it has also come at a significant cost and the losses have been reported as the highest in European football by UEFA.

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A club statement read: “It is important to note that these figures are in line with the strategic business plan, and we continue to operate within the Premier League’s Profit and Sustainability rules. The owners of Aston Villa remain committed to the long-term and sustainable development of the Club, and we look forward to continued progress on the delivery of our strategic plan.”

However, there have been suggestions Villa could look to sell some players during the summer transfer window in order to avoid a points deduction that has been imposed on Everton after they fell foul of the Premier League’s profit and sustainability regulations. Nottingham Forest are also believed to be awaiting news on a possible deduction after they also breached the rules over the last 12 months.

Villa midfielder Douglas Luiz is believed to have several admirers within the Premier League and around Europe after his form at Villa Park has been a key factor in helping Unai Emery’s side into contention for a place in next season’s Champions League. The Brazil international and in-form striker Ollie Watkins have both been linked with a move to Premier League title contenders Arsenal.

Newcastle are also believed to retain an interest in Villa academy product Jacob Ramsey, who was said to be the subject of a tentative enquiry from the Magpies during the January transfer window.  Those reports were shot down by Howe in the final week of the window as he described them as ‘incorrect’ but the Magpies boss is believed to be a keen admirer of the England Under-21 star.

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