It's not a failure if a team fails to win a trophy in a season. Madrid is actually having a bad playing season but it is often said that not everyday is a Christmas. There won't be joy in watching football if one team keeps dominating over the other teams season in and season out. Madrid however still has a chance in UCL despite their bad form, winning over Chelsea will not be that difficult for them.
A more difficult season than last (because of Barcelona and the World Cup) but still a good season
not to throw away, still in the Champions League
top places in La Liga, I'd say it's not in bad shape