UK soccer club Manchester United reported record pre-tax profits yesterday, bolstered by the sale of David Beckham to Real Madrid and the first full year of the club's £303 million (€432.2 million) merchandising contract with sportswear group Nike.

The results reasserted the club's financial supremacy over its UK peers, with only Chelsea, recently acquired by Roman Abramovich, a Russian billionaire, able to rival its muscle.

A successful season on the pitch, culminating in United winning its eighth Premiership title in 11 years, lifted turnover from £146.1 million (€208.4 million) to £173 million. Pre-tax profits before player amortisation were £47.7 million against £32.3 million last time. Profits after player trading were £39.7 million.

The club lifted its special dividend from 1p to 1.5p, to accompany the basic full-year payout of 2.5p. But with United debt-free and enjoying a strong cash position, Merrill Lynch said the club should have paid more.

"This is a company that today reported a free cash flow (before dividend payments, but after player acquisitions) of £35 million," said Mr Andrew Burnett, leisure analyst at Merrill Lynch.

"We think \ could comfortably distribute more than half of that cash."

Mr David Gill, the club's new chief executive, said the results showed United was "a league ahead in terms of our financial strength".

Mr Gill, who recently replaced Mr Peter Kenyon following his departure to become chief executive of Chelsea, added it was unlikely the departure of Beckham, the club's most popular star, would hinder United's plans to capitalise on the Asian market.

The club recently toured the US and estimates it has more than 50 million fans worldwide. However, it has commissioned Mori to provide more up-to-date data. - (Financial Times Service)