I do not think he is correct, Real Madrid was established in 1902 with the name Madrid Football Club, in 1929, Real Madrid is one of the members of La Liga and one of the clubs that started the league. Among many other clubs in La Liga, Real Madrid has never relegated before. I am wondering how a club that has not been relegated before in La Liga with 14 won Champions League gotten broke in the past. But maybe he means that a time when Real Madrid was not rich, but when also other clubs in Europe were also not rich, if that is what he is talking about. Real Madrid has always been the most successful club in La Liga.
That's why I say, there was a time when Real Madrid wasn't rich but because no club was rich, because football didn't move the money it does now. But I don't think that's what he meant because he says it wasn't a strong one either. Well, in 121 years of history, it is normal that it has had better and worse times but it is the club with the most titles in Spain and in the world, so it can't have nad long periods of weakness.