Manchester United in flotation threat

Manchester United faces an increasing threat from speculators betting against the club's controversial $2.9billion (pounds 1.8billion) flotation.

Almost 11pc of the shares that Manchester United sold last month are now in the hands of investors looking to profit from a further slide in the stock - so called shorting - according to the financial information firm Markit. That figure has more than doubled from immediately after the initial public offering just over a month ago in New York.

The number of shares being shorted will add to some fans' concern over an initial public offering originally planned for Singapore. Manchester United's Supporters Trust has criticised the IPO because not all the $233m raised is being used to pay down the club's more than pounds 430m of debt.

"It's a story that is interesting to short-sellers," said Simon Colvin, an analyst at Markit. "People have ingested the situation of a highly leveraged sports team that is open to the whims of the football season."

The US-based Glazer family, which used the IPO to sell about 10pc of the club they acquired for pounds 790m in 2005, opted for a flotation just as Manchester United faces increasing competition for domestic trophies from local rival Manchester City, and for the European Cup from Barcelona and Real Madrid.

Mr Colvin said the volume of shares available for short-sellers to borrow has risen as investors at the IPO allocate some of their holdings to the lending programmes.

The club's shares closed at $12.45 in New York on Friday.

Manchester United declined to comment.