Sanz, the son of former Real Madrid president Lorenzo Sanz, played for Los Merengues for four years between 1995-1999.
The former defender was reacting to Simeone's swipe after Real's controversial Copa win against Celta Vigo on Thursday.
"The comment is unfortunate. In 100 years there could be something for everyone, including Atlético de Madrid... or Sevilla," said Sanz.
The former Real Madrid player said that Simeone's comments were "out of line" and that the Atlético Madrid coach "made a mistake.
"Several professionals can answer you, as they have answered you... That's what can happen to you. 100 years is enough for everyone."
After the refereeing was questioned following Real's Copa win, Simeone said: "Episodes like that, there have been for a hundred years there... I don't know why it surprises them."