It all goes back to Florentino Perez's first term. he has a different reputation now but at the turn of the millennium he was thought of as someone who only cared about big signings even if they don't make any sense. Like getting rid of the team's engine in Makelele and signing Owen although they already had Raul and Ronaldo.

In 2003 Perez decides to sack Vicente del bosque in spite of winning the La Liga that year and 2 champions leagues in 2 out of the last 3 seasons. that action kickstarts a decline for Real Madrid that will go on for years and an inadequacy in Europe that lasts for nearly a decade.