The Spanish,European and World champions, might have sold the wrong midfielder last term and of course are still feeling the effects of World Cup.
Anceloti's team had just been handidly beaten 3-1 by Barcelona, thoroughly outplayed in a match 09 that might have just signalled a shift in the clasico power.
"We are Real Madrid," Anceloti defiantly declared after losing the Spanish Supercup to Barcelona on Sunday.
The Italian coach's statement was a reassertion even assurance. Carlo is right as Real Madrid are so used to success such that even a small blip is usually blown out of proportion.
But this does not deny the fact that Real Madrid have looked strangely beatable since the world cup, in fact they have only won two of their last five games in normal time and even in victory, they've been far from convincing.
Fatigue is definitely a factor but it not the only explanation as there are also other issues in play.
By allowing Casemiro's departure, they were left without a defined defensive midfielder and with him went his ferocity and bite.
On the other hand, Karim Benzema has struggled with form and fitness since being forced out of the France squad in Qatar.
However its not only a question of personnel, some of Madrid's problems run deeper than that.
We've tried to underlying some of this problems below :
Vinicius Form
At only 22 years, Vinicius have already won every club trophy and has shown that he is one of the best in his position.
But the Brazilian winger is without a goal and an assist in his last five games and has continued to cast a frustrated figure in the past weeks. With the opposing teams discovering that doubling down the winger can contain him and prevent him from having any impact in games.
A product of the system, Vinicius is also individually brilliant but he can't operate without the supreme talents around him. So this poor run of form is not necessarily his fault. But he's looked so badly exposed, with madrid suffering as a result.
Midfield Issues
It was wonderful seeing Modric run the midfield in Qatar. At 37 years of age, the Croatian captain didn't seem to stop with his old legs still charging deep into hight intensity knock out matches. But surprisingly, since his return to the Spanish capital, his legs have slowed as the Madrid magician have been caught out of pace more often and unsteady at times.
Thebad news is that Modric is not the only culprit here, as together with his partner Toni Kroos Madrid's midfield has been far from their best in the recent weeks. Despite Kroos being able to play full matches, recently, he lacks his skills on the ball that made him brilliant and valuable over the years.
Right now it looks like Madrid sold the wrong midfielder when they sold Casemiro to Manchester United last summer. The former Los Blancos anchorman is game by game proving to be a success in the Premier league where as his supposed replacement Auriel Tchouameni is still proving to be a promising prospect, still learning his trade as was proven in the 64 minutes of game time in the loss against Villarreal.
Fellow prospect Cavaminga also turned in an error-ridden performance against Barcelona with his errors leading to both of the Barcas first half goals.
Fede Valverde have also developed a habit of dissappearing fir long stretches in games.
Carvajal's Shortcomings
In last years champions league final against Liverpool, Carvajal randered Diaz in effective. Unfortunately he hasn't have any good game since then. His decline in form and pace has been exposed this season on a game by game basis. The current Madrid right back is 32 years old and no longer have the electric pace to make up for his positional shortcomings that has been a concern this season.
Barcelona ruthlessly targeted Carvajal's position deploying the rapid Balde in the left back position while having Gavi drop back into the space between Kroos and Carvajal. The right back was constantly caught off position with Barcelona playing around him.
Anceloti's tactics and approach
The day before last year's champions league final, in what was an advert of Anceloti's relaxed man-management brand, the Italian tactician delivered a brief team talk before allowing the team to have a kick about with their families in the pitch, displaying a scene of calm with Madrid going on to edge Liverpool 1-0 despite being under immense pressure for most part of the game.
Anceloti is a type of manager who works with a group of players he can trust and uses his creativity and tactical nous to take an almost laissez-faire approach to coaching. All he has to do is create a right environment, and perhaps its starting to wear off.
Madrid have been predictable in recent weeks, Vinicius Junior has been swarmed every time he touches the ball. Benzema has dropped so deep and Madrid has been forced to play with an attacking option up top.
The managing without having to use the heavy-intervention style that has served this side so we'll is starting to look fallible. Los Blancos need a systematic shake - up or a more hands on coach.
Costly Mistakes
The swagger that defined the last two seasons have disappeared. Madrid made three mistakes to concede goals against Barcelona. Not due to a lack in quality but due to lack of conviction and that's not normal.
Barcelona's second goal came from a poorly weighed pass from Rudiger and a slow reaction from the defence around him.
The same thing could be said about 2-1 Villareal's loss. Mendy underheat a simple pass that lead to an easy goal.
With errors starting to pop up, with slip ups leading to goals and costing them games, Madrid will have to change that is if they want to keep up with the resurgent Barcelona, unless they want to end the season trophy less.