Ofcourse Madrid understands that play time is over and they now need to put in the work they need to get trophies and to sta in good positions that they will hold on to till the season gets to the point where they become deserving of the trophies. Barcelona will actually need to get lucky if they must be able to win the title, they currently aren't in the best position to get that done but they can obviously do it as they got some time to get it done so for me it's not a complete write off on them just yet.
They only need to get lucky in laliga i think, they seem to be killing it in Uefa champions league but more effort still needed, I don't expect them to allow same thing that happened with Benfica aging as it's going to lead to their defeat( they were very lucky to have that 5) but here's Laliga anyways

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Hence, emphasizing on what kind of luck they need... we can all conclude it's a downfall for realmadrid

that's their only ticket to get their way back ontop of the table and I don't think that's happening anytime soon