If we use your hypothesis, then why haven't Real Madrid done better in the last 5 years? surely their name would strike sufficent fear into the opponents to deliver the victory, the fact is the name only holds weight if the connotations of the name are realised, which unfortunately for Madridsta's hasn't been the case over recent years.
Remember a couple of years ago, when clubs / players / managers were suggesting going to Old Trafford wasn't the heart clenching experience it used to be, why you might ask? quite simply because they weren't the team they used to be at the time.