Madrid's revenue increased 17 percent to 275.7 million euros ($332.2 million) in the year ended June 30, according to accounts mailed to club members this week. Bloomberg News obtained a copy of the documents. United, which hasn't published figures for that period, had sales of 169 million pounds ($298.6 million) for the year through July 31, 2004.

Since Florentino Perez, 58, took over as club president five years ago, he's more than tripled sponsorship and merchandising revenue even as the team struggles on the field. Madrid, which won the last of its record nine European titles in 2002, is trying to avoid a third straight season without a trophy for the first time in 53 years.

``The policy of signing the likes of Ronaldo, Robinho, Beckham and Zidane is driving Real Madrid's popularity,'' Oliver Butler, an account manager in London for sports consultant Sport+Markt AG, said in a phone interview. ``None of Manchester United's players have the same kind of appeal.''

Madrid expects to lift revenue to 300.1 million euros in fiscal 2006, the accounts showed. Profit fell 20 percent to 30.3 million euros in the latest period as the cost of paying its all- star squad rose 17 percent to 144.5 million euros. England's United had net income of 19.4 million pounds for the year to July 31, 2004.

``The foundations on which we face the 21st century are so solid that our identity and leadership are guaranteed,'' Perez said in a statement in the accounts. From a sports perspective ``we want more,'' he said. The club press office declined to comment.

Madrid, like its Spanish archrival Barcelona, is owned by its members. They will be asked to approve the accounts at their annual meeting Oct. 2.

United's profit in the six months ended January 2005 slumped 52 percent after defeats on the field eroded television revenue. In September last year, the club forecast a 14 million-pound decline in full-year income from broadcasting. United will file its accounts for fiscal 2005 by the end of April 2006, spokesman Phil Townsend said. He declined to comment on Madrid's accounts.

Manchester United, whose players include strikers Wayne Rooney and Ruud van Nistelrooy, has had the highest revenue of any club since 1997, according to an annual survey compiled by accountancy firm Deloitte & Touche LLP. U.S. billionaire Malcolm Glazer returned the club to private ownership in June after buying it for 790 million pounds.

``United aren't ahead of the game like they were four or five years ago,'' Edward Freeman, who ran United's merchandising unit in the 1990s, said in a phone interview. ``They've lost the initiative in the Asian market.''

The 30-year-old Beckham, signed from United in 2003, helped lift Madrid's sales of merchandising such as jerseys by 67 percent to 50.8 million euros in his first season, and by another 6.5 percent to 54.1 million euros last campaign.

Sponsorship and advertising income rose 78 percent to 45.9 million euros after Madrid signed an extension of its jersey sponsorship with Siemens AG through the end of this season on improved terms, the club said. It declined to provide figures. Madrid players share 50 percent of income from personal endorsements with the team.

United is unlikely to follow Madrid in acquiring star players to boost revenue, said Leigh Webb, an analyst at Panmure Gordon & Co. in London.

``United prefers to develop young players who become famous by winning trophies with the club,'' Webb said. Glazer, 77, has yet to disclose his plans for the club, he said.

Madrid's France midfielder Zidane and Brazil striker Ronaldo have six world player of the year awards between them. Like Alex Ferguson's United team, Madrid failed to reach the Champions League quarterfinals last season, when it finished second in the league to archrival Barcelona.

Madrid needs to start winning trophies or its sales growth will be affected, Freedman said.

``If you win the Champions League your income spirals,'' he said. ``You have to be successful, if not in the short term then in the long term.''

Coached by Vanderlei Luxemburgo, Madrid spent 77.2 million euros signing Brazil forwards Robinho and Julio Baptista, and Spain defender Sergio Ramos before the current season, according to the accounts. The club got 42.9 million euros for selling Michael Owen to Newcastle, and Walter Samuel and Santiago Solari to Inter Milan.