Bayern Munich coach Jupp Heynckes has revealed the reasons why Real Madrid is struggling this season.
Heyncknes believes that the European Champions were forced to push out the duo to cut down their huge wage bill which has affected their campaign this season.
Real Madrid sold Morata to Chelsea £58m and loaned James to Bayern Munich on a two-year deal.
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The La Liga Champions has struggled this season after the release of these two players and Cristiano Ronaldo has even called for Rodriguez to be recalled from the Bavarian side.
The former Real Madrid coach thinks the Spanish champions are paying the price in La Liga points for cutting back on their wage bill.
"Real have given away three very good players in the summer with Alvaro Morata, Pepe and James Rodriguez, perhaps to save salaries," he told Goal.
"They have not bought big and thought that with the young players they can compensate for that.
"You need a really good mix between young and old, between experienced and hungry players."
Real Madrid is 19 points behind Barcelona in the La Liga race but Heynckes believes Zinedine Zidane's team are just going through a short-term blip caused by winning too much silverware.