Real Madrid's Champions League magic finally runs out - so how do Los Blancos close the gap to Man City?

Thanks for the memories, Carlo. Word is, there might be an opportunity in Rio...

Ancelotti insisted after Wednesday's game that he is not going anywhere, and that he plans to see out his Madrid contract until it expires in 2024. He has earned the right to leave Santiago Bernabeu — or any job, for that matter — on his own terms. After all, this is a manager who has won every one of Europe's top five leagues and four Champions Leagues over a glittering coaching career.

He has survived and adapted to different eras of coaching, taken on parts of different styles while proving that others can be remarkably easy to beat. In a sense, this Madrid side is his masterpiece. At their best, this is a perfectly harmonious group of 11 players who are patient out of possession and devastating in it. Ancelotti has made them tick by helping instil a mentality, and then letting them play.

But as Wednesday showed, that isn't as reliable as it used to be. The signs that Ancelotti should perhaps move on have been there for a good chunk of this season. Madrid have stagnated in La Liga, and could end the season in third, 20 points behind Barcelona. This tie, then, was supposed to be the signature win he could point to from this strange campaign to keep himself in the job.

Instead, his team were battered. This isn't necessarily Ancelotti's fault — no one can stop City at the moment. Still, a change of coach might have to be the answer here. Identifying the right man for the job is difficult, and two top-tier managers have been snatched off the market in the last three months in Thomas Tuchel and Mauricio Pochettino.

But Ancelotti's time in Madrid might be up. He could at least save face by taking the Brazil job, with the Selecao publicly pining for his hiring.

Madrid have relied on experience in the Champions League for a number of years now. And with every season that passes, a veteran gets moved on. Cristiano Ronaldo, Casemiro, Sergio Ramos and Marcelo have all seen Champions League glory and departed with various levels of dignity.

The last four of those serial winners are just about clinging on here. Kroos, Modric and Benzema have all signed or about to sign new one-year contracts, while Carvajal's deal expires in 2024, too. And while they will undoubtedly be in the running again next year, it's hard to see this group improving on this result — especially with a likely new slate of Champions League contenders potentially making runs in the competition next year.

The aforementioned quartet aren't necessarily holding Real Madrid back, but perhaps they should be gracefully edged out of the door. Kroos' defensive frailties were badly exposed at the Etihad, while Modric was uncharacteristically leggy and looked scared on the ball. Carvajal, meanwhile, was run ragged by a swaggering Jack Grealish. Benzema, for his part, hardly got a kick.

It is too impulsive to simply sell all four, or faze all of them out within the next 12 months, even. But Madrid should look towards the future, and start to work some young players, such as Aurelien Tchouameni or Eduardo Camavinga, into the starting line up more regularly.

It's a good thing, then, that one of the presumptive reinforcements is all-but committed to the Madrid project already. If reports are to be believed, Madrid have a personal agreement with Jude Bellingham. The finances will be tricky, especially given the gaudy price tag Dortmund have slapped on the England midfielder. But Los Blancos will pay up. For the right fit, they always do.

Exactly where he plays remains to be seen. Bellingham should slot anywhere into this midfield, and long-term could be the perfect third point of a component of a Tchouameni-Valverde trio. There is also an argument to be made that he could be a perfect No.10 in a reworked system.

Regardless, this is an instant-impact plauer. Bellingham might not lift Madrid to the stratospheric heights of prime Modric and Kroos. In fact, the team might not ever reach them again. But he is a major component of setting them on that track, starting immediately.

There should also be additions elsewhere. Benzema is a brilliant striker and a Ballon d'Or winner. He can still score at a frightening rate, and has a mastery of space and off-ball movement like few other strikers. But the Frenchman didn't look fit across these two legs and was held scoreless.

The reality is, Benzema is entering his late 30s, and has endured persistent muscle injuries this year. Here is a player that needs to be shielded, bubble-wrapped for the big games. Madrid, then, need someone who can handle the games in between — or at least chip in.

There are going to be plenty of big names on the market this summer, and there is always the lurking possibility of Madrid going in for their the player they covet more than any other, Kylian Mbappe. That doesn't need to happen, though - not now.

Still, goals need to come from elsewhere, and there are one or two affordable No.9s on the market. Los Blancos would be wise to take advantage. It could well pay off soon.

It has become clear, over the course of this season, that Ballon d'Or winning Benzema is no longer the face of this team. Certainly, he grabs headlines and scores goals, but the most impactful player on a more consistent basis is the winger he famously claimed was playing against Madrid, rather than for them.

Vinicius is not without his critics, especially among rival fans — and often for the worst of reasons. Now, though, he should be made the face of this Madrid team. The Brazilian already has the flash and swagger of a superstar, and when Benzema has been out, Los Blancos have started to play through him, anyway. It's now time to set that up properly, to gear their side to getting their best player on the ball as much as possible.

There are still some issues to be figured out here. Vinicius hasn't officially signed a new contract and his current deal expires in 2024. Meanwhile, he could also do with toning down his reaction to opponents who clearly know how to rattle him. But these are fixable. Madrid just need to make sure the system is in place.

When quizzed about Wednesday's result following the game, Thierry Henry asserted that he was not worried about Real Madrid. As he put it: "They are always here competing...regardless of when it is."

And the former Barcelona man has a point. Madrid have won the Champions League more times than any other club, and have made 11 of the last 13 semi-finals. They have won the competition at least once every decade, and have never failed to make it out of the group stage. Although this seems like the end of a famous side, the club has the pedigree and talent to be in the mix every year.

Madrid's run to the Champions League final last year was often interpreted as lucky, or a fluke. And they were, admittedly, fortunate at times. But these runs are not merely pieced together. Superior sides are not easily beaten with a freak bounce or opponent's error.

There is a strange aura to Los Blancos in the Champions League, an ability to find another gear on European nights. Since Ancelotti took over, it has been largely due to the mentality that he instilled in the team. Before that, it was down to sound tactics and an elite squad.

The fact is, Real Madrid will always be in contention. In a rare occasion of a footballing cliche holding true, it's just part of their DNA. Believe in that, and this revamp may not be as dramatic as some expect.