Mbappe, Ancelotti or Perez: Who killed Real Madrid's Champions League dream?

The white flag was raised at the Santiago Bernabeu not in surrender, but in stunned silence. As Arsenal celebrated a famous knockout victory, a cold reality settled in Madrid: this was not just a defeat—it was a reckoning.

Despite more than a month of La Liga football left, with the Copa del Rey final and the Club World Cup still to come, Real Madrid's exit from the Champions League at the hands of Mikel Arteta’s Arsenal has triggered an early postmortem. For a club whose identity is interwoven with European nights, this quarter-final loss feels like a full stop. And now, the blame game begins.

In times of failure at the Santiago Bernabeu, the spotlight first turns to the bench—and this season is no exception. Carlo Ancelotti, who delivered two Champions League titles in his second spell, now finds himself under intense scrutiny. His side was tactically outplayed across both legs, with Arsenal imposing their superiority with precision and poise.

Critics like Miguel Quintana point to Ancelotti's inability to get his message across. "A coach who didn’t know how to get his message across, and a club that didn’t know how to replace key players like Kroos or Carvajal." It's a damning summary of a season in which Real Madrid, despite their pedigree, have looked like a club chasing shadows.

There’s also the matter of timing. If the club decides to part ways with Ancelotti, do they do it before the Club World Cup in July? Or let him try to lift one last trophy before ushering in a new era? Either choice carries risks.

The defeat has exposed deep flaws in squad planning. The departure of Toni Kroos left a creative void that was never truly filled. Injuries to key defenders like Militao and Carvajal compounded the situation, and reinforcements failed to arrive at the right time.

Vero Boquete summed it up succinctly: “They weren't able to create clear chances… not for lack of will, but for lack of a true creator.” Without Kroos, and with Luka Modric fading, Real Madrid lacked a midfield maestro capable of connecting lines and setting the tempo.

Up front, Real Madrid's high-profile attack failed to deliver. Vinicius Jr. went missing in the key moments, Rodrygo was largely ineffective, and Kylian Mbappe—hailed as the next Galactico—delivered yet another underwhelming performance on the European stage. Jude Bellingham, once a spark of brilliance, seemed to dim as the season progressed.

This Champions League campaign was not lost in April. It was lost in boardrooms, in transfer indecision, and in a lack of strategic vision. Raul Varela didn’t mince words: “They were fooled by the illusion of success and failed to correctly interpret Mbappe's arrival.” A confused tactical blueprint and a failure to build a complementary attack left the team unbalanced and vulnerable.

The club’s faith in aging stalwarts like Modric and Carvajal, the delayed integration of players like Arda Guler, and the overreliance on stop-gap solutions like Brahim Diaz have exposed a wider planning failure. Castilla defenders have been thrust into battle, while players like Dani Ceballos—once on the fringes—were begged back into action. The team has lacked both depth and direction.

More than any single individual, what this exit reveals is the failure of a project. Ancelotti’s tactics, the players' inconsistency, and the board’s decisions are not isolated issues—they’re interconnected symptoms of a system losing its edge.

Roberto Gomez said it bluntly: “Ancelotti has left the team completely at the mercy of four players… a lot of character, yes, but zero footballing proposition.” Arsenal didn’t just beat Madrid; they exposed the fragility of the entire project.

Florentino Perez and Jose Angel Sanchez now face a defining summer. A new manager, likely a rebuild, and a clear vision are non-negotiables. The likes of Alaba, Lucas Vazquez, and possibly even Modric could make way. Long-term injuries and poor performances might end the road for Carvajal and others.

There is no singular villain in Real Madrid's Champions League demise—it is the result of collective failure. The coach was tactically outclassed. The squad was imbalanced and poorly reinforced. The board’s transfer strategy lacked coherence. And the players, in the biggest moments, simply did not rise to the occasion.

The rebuild will not be easy. But if Real Madrid are to reclaim their throne in Europe, they must learn from this fall—not just react to it. This wasn't just a Champions League exit. It was a warning. Whether the club listens will define the seasons to come.