Manchester United Shares Lower As Company Is Set to Shell Out $26.6 Million For Defender

Shares of English Premier League giant Manchester United MANU dropped Wednesday on reports that the club has reached a deal to sign Argentinian defender Ezequiel Garay from Portuguese club Benfica for $26.6 million. Garay would be the club's second signing under new manager David Moyes after Uruguayan defender Guillermo Varela was announced earlier this week.

Large Fee

Reports suggest that United was forced to shell out 17 million pounds ($26.2 million) for Garay, 26. The former Real Madrid center back will serve as cover for aging stars Rio Ferdinand and Nemanja Vidic and will most likely act as their replacement upon retirement.

Garay has made 51 appearances in two seasons with the Portuguese club, who finished second in the domestic league last season. The club also made a run in the UEFA Europa League, losing to Barclays Premier League club Chelsea in the finals, with Garay's defensive play key to the team's success throughout the run to the final.

Second Summer Signing

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Garay is the second signing to be announced under the tenure of David Moyes, who took over for the legendary manager Sir Alex Ferguson last month upon the latter's retirement. The large cash disbursement for the defender though does affect Manchester United's finances, who only reported cash of $113 million as of the last filing.

Top Players

Manchester Untied is a club that constantly brings in top talent to support its home-grown players in efforts to win titles. This morning, Bloomberg Sports issued its first Soccer Power Ranking with three of United's players cracking the top 50. Star strikers Robin van Persie and Wayne Rooney were ranked 6 and 26 respectively while Brazilian right-back Rafael was ranked 21.

Manchester United had the most players of any Premier League team ranked in the top 50 with their three. Moyes former club Everton had two players in the top 50, as did London clubs Arsenal and Tottenham Hotspur. Champions League winner Bayern Munich dominated the list with 7 players including new signing Mario Gotze. United only trailed Bayern and Italian champions Juventus in the rankings.

Shares Down

Shares declined 2.4 percent Wednesday on the reports of the massive cash drain on the player acquisition. Shares fell $0.40 to $16.29 but are still well off of the 52-week low of $12.00. The average analyst price target for the stock is just under $20, implying about 23 percent upside from here. The consensus analyst rating is a buy on the stock.