Real Madrid chiefs have privately admitted that their long-term transfer strategy has failed following a disastrous night in Lisbon. Reports from Spain suggest the club accepts their renewal plan to replace legends like Toni Kroos and Luka Modric has flopped, with the board now preparing for a massive summer overhaul to fix the broken midfield engine.The alarm bells are ringing louder than ever at the Santiago Bernabeu following a dramatic 4-2 defeat to Benfica in Lisbon that left the reigning European champions outside the top eight in the Champions League standings, forcing them to navigate a play-off to secure a last-16 spot. Los Blancos started the season with tremendous optimism under Xabi Alonso, winning 13 of their first 14 matches under the coach. However, things soon turned sour as their La Liga and Champions League form dropped and the Spaniard was sacked after the Supercopa de Espana final loss to Barcelona.The midweek debacle against Jose Mourinho's new team confirmed that the upheaval stretches beyond the first team, however, and a damning report from Cadena SER claims the mood within the club’s corridors of power has shifted from concern to resignation regarding their squad planning.For the first time, senior figures at the club have acknowledged that the transition strategy designed to modernise the squad has not worked. Anton Meana, reporting for El Larguero, revealed the stark change in sentiment amongst the hierarchy. "It is the first time that, speaking with important people at the club, I perceive the feeling that the plan has failed regarding the generational relief in the centre of the field," Meana reported.The root of the crisis lies in the impossible task of replacing the most successful midfield trident in the club’s history. For a decade, Casemiro, Toni Kroos and Luka Modric defined an era, winning four Champions League titles together and etching their names into the club's folklore. Their departure was inevitable, and Madrid spent heavily to prepare for life after the trio.Significant funds were allocated to bring in the heirs apparent: Eduardo Camavinga, Aurelien Tchouameni, and Dani Ceballos were signed to take the baton, while creative talents like Brahim Diaz and Arda Guler were added to provide depth and spark. However, the report indicates that the club now realises they have failed to fill the void. Despite the heavy expenditure and the youth of the recruits, the current midfield has been unable to replicate the control, leadership, and winning mentality of their predecessors. The "immeasurable stamp" left by Kroos and Modric has highlighted the deficiencies of the new generation, who have struggled to dictate matches in the same commanding fashion.Looking for smarter football bets? Get expert previews, data-driven predictions & winning insights with GOAL Tips on Telegram. Join our growing community now!The admission of failure goes beyond the players; it is an acceptance of poor sporting direction. The report highlights that three different coaches have now passed through the dugout attempting to make this midfield configuration work, yet the "step forward" expected from the younger players has simply not arrived.The Real Madrid board is reportedly conscious that the first team suffers from a "huge footballing problem." While they continue to regard their attack, which boasts global superstars such as Vinicius Junior, Jude Bellingham, and Kylian Mbappe, as top-tier, they accept that the machinery behind them is broken. The Galacticos up front are being starved of the service and stability that the previous midfield provided.The hierarchy has verbalised that while the players are talented, the specific chemistry required to replace the old guard is missing. The signings made to substitute the midfield were expensive and highly rated, but the reality on the pitch has shown that the collective unit is less than the sum of its parts.Add GOAL.com as a preferred source on Google to see more of our reportingWith the realisation that the current season is in jeopardy and the risk of a trophy-less campaign is growing, the sporting direction is already looking to the future. Cadena SER claims that work has already begun on planning for the next campaign, with the club desperate to ensure the competitive drought does not extend further for current coach Alvaro Arbeloa or whoever replaces him for the long-term.The solution, it appears, will be another foray into the market. The report assures that Real Madrid are preparing to make a "strong investment" in the next transfer window. The objective is singular and clear: to fix the midfield. While there is some accountability attributed to the bench, the board is largely assuming the blame for the failed planning. They recognise that the tools provided to the coaching staff were insufficient to maintain the club's high standards, and a major summer shake-up is now expected to finally close the chapter on the transition era.