The Spanish giants came up short in the Champions League semi-final on Wednesday night, drawing 1-1 with Juventus, to lose 3-2 on aggregate.
After the match, Liverpool great Carragher suggested that Madrid's front three of Cristiano Ronaldo, Karim Benzema and Gareth Bale did not link up well together and the central midfield of last season's European champions was non-existent, contributing to the negative result against a Juventus side that wanted it more.
"There is no doubt that the best team won tonight, and I say that - team," he said on Sky Sports. "And sometimes that is good for football. That is what you want, the best team, they are together.
"I look at that central midfield for Madrid and there has never been a central midfield. You think how much they miss [Xabi] Alonso, [Luka] Modric is missing, even [Angel] Di Maria from the final last year.
"But you look at them and you think of Ronaldo and Bale and the front three that we talk about, and they are all individual players and that is what they have lost to tonight, the better team."