They built the team for the short term, like recruiting Modric, of course they realize that they might only be able to utilize this aging player for one or two seasons, but I think AC Milan's management did not build this team to compete for the title and I'm even sure they didn't make the team much better than last season, so I won't have high expectations for AC Milan next season.
While they are trying for a short term success, they need to realize they have some squad that is not good enough for the top. And as a team that won the league recently, being this bad only a few seasons later, and needing some saviour for the short term, is bad management. They need to gather some money by selling some of the useless players, and get some 25 year old (or there abouts) players who can play there for a few years at least.
The situation they are in isn't that great, and there isn't a quick solution. Lets assume that they get plenty of old great players like Modric, can they win the title that way? Of course not, the players would be tired and fatigued after a certain level. And if they keep spending money this way, then they can't be good in 3 years neither.
I agree with you.
If AC Milan's goal is to build a stronger club and compete for titles, they would certainly prefer to recruit younger players for long-term contributions.
Modric was indeed quite an active player in the past, but with his advanced age, his activity will undoubtedly decline, as will the stamina of an aging player.
Meanwhile, there are many talented young players who can help the club compete with other strong clubs and contribute long-term without having to spend a lot of money each season.
But let's see what AC Milan's plans are. If they only have short-term plans, they should achieve better results than before.