Fabio Capello as coach

In the early 1990s, La Quinta del Buitre split up after Martín Vázquez, Emilio Butragueño and Míchel left the club. In 1996, President Lorenzo Sanz appointed Fabio Capello as coach. Although his tenure lasted only one season, Real Madrid was proclaimed league champion and players like Roberto Carlos, Predrag Mijatović, Davor Šuker and Clarence Seedorf arrived at the club to strengthen a squad that already boasted the likes of Raúl, Fernando Hierro, Iván Zamorano, and Fernando Redondo. As a result, Real Madrid (with the addition of Fernando Morientes in 1997) finally ended its 32-year wait for its seventh European Cup. In 1998, under manager Jupp Heynckes, The Whites defeated Juventus 1–0 in the final thanks to a goal from Predrag Mijatović.[19]

In July 2000, Florentino Pérez was elected club president. His campaign vowed to erase the club's debt and modernize the club's facilities. However, the primary electoral promise that propelled Pérez to victory was the signing of Luís Figo. The following year, the club controversially got its training ground rezoned and used the money to begin assembling the famous Galáctico side including players such as Zinédine Zidane, Ronaldo, Luís Figo, Roberto Carlos, Raúl and David Beckham. It is debatable whether the gamble paid off, as despite a European Cup win in 2002, followed by the League in 2003, the club failed to win a major trophy for the next three seasons.

Ramón Calderón was elected as club president on 2 July 2006 and subsequently appointed Fabio Capello as the new coach and Predrag Mijatović as the new sporting director. Real Madrid won the La Liga title in 2007 for the first time in four years but Capello was sacked. In the 2007–08 season, The Whites won the domestic league for the 31st time, achieving their first consecutive league title in eighteen years.

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