Raiola, who represents the likes of Zlatan Ibrahimovic and Mario Balotelli, claimed in October that people accept Cruyff’s statements regardless of what he says.
But the agent, who has caused controversy by likening Uefa to the mafia in the past, put his hands up and attempted to make amends for the wording of his outburst.
“If you make a mistake, you need to have the courage to apologise for it,” Raiola told BNR Nieuwsradio.
"I shouldn't have used the word demented. That is a serious illness, affecting a lot of people. You shouldn't use the word like that. I have a father who is about the same age as Cruyff. I wouldn't like it if he were called that. I will never call him [Cruyff] demented anymore.”
However, Raiola continued with a separate assault, saying that what has been coined Cruyff's ‘velvet revolution’ at Ajax is not the way to run a successful football club.
With players such as Edwin van der Sar head of marketing, Marc Overmars head of scouting and Frank de Boer as head coach, the agent questioned the role of former heroes.
Raiola added: "His [Cruyff's] opinion is something like, 'let's make sure former football players get high positions because they are former football players', not because they have proven something. His club Barcelona isn't led by former football players, you know.
"[AC Milan] won 25 major titles in the last 27 years,” he added. “AC Milan has never been led by former football players."