I think Real Madrid has just make a good decision with give Luca Modric one year contract extension because with his experience and as a captain Luca Modric can be good leader for Real Madrid young players but indeed because of his current age is not young anymore so don't expect more about Luca Modric performance because his performance is obviously decline compared to his performance several years ago
Real madrid is quite aware of Luca modric age and would probably not expect much from him as it was in the previous season. Modric already offered to Madrid all he could and I think Madrid is trying to reciprocate the good gesture by giving him the captain role. Luca even before now has been displaying leadership qualities in that squad and I believe he can do more better as a captain. Some of these young players need someone who’s capable of putting the squad together in and out of the pitch. They will surely listen and respect him as the senior player he is and as the legend.
Luca Modric has spent almost 12 years of his career with Madrid, although previously it was difficult to adapt to Madrid at the beginning of his arrival from Tottenham but slowly Luca Modric was able to get a leading role in the Madrid midfield and was irreplaceable with Kroos as the motor of Madrid attack, it does not feel that now Luca Modric has entered his 38th year and obviously it is the end phase of the age of a footballer in today competitive league, But ancelotti continue to give him time to stay at Madrid even though it's only one season away to play in their first team, next season I think Modric will be the most senior player in the Madrid squad so he deserves to be captain to be Ancelotti second hand on the pitch in managing Madrid young players at the moment, With his age and experience that has been quite a lot, of course he will be listened to more by young players later.