Real Madrid coach Manuel Pellegrini says his side are far from the finished article despite spending more than $300million in the summer sales.
|Cannavaro, centre right, scored for his old club against his old club [AFP]
The Spaniards were knocked out of the Peace Cup friendly tournament after losing 2-1 to Juventus on Friday.
Both of Juve's goals came from set pieces, with Fabio Cannavaro and Hasan Salihamidzic heading in from Alessandro Del Piero deliveries at the start of each half.
Cristiano Ronaldo had levelled from the penalty spot, but was unable to engineer a second fightback, and the Serie A side will now meet Aston Villa in the Peace Cup final on Sunday.
Villa beat Porto 2-1 in the other semi with first-half goals from Emile Heskey and Steve Sidwell, though Heskey was sent off later in the game.
"We have conceded five goals from set pieces in this competition and we can't allow ourselves to give away two a game," Pellegrini said.
"We are getting better as each game goes by, but we haven't worked much on dead-ball situations yet."
Most of the fans in Seville's Olympic stadium were there to see the new-look Real Madrid, with Ronaldo and Karim Benzema among the attractions.
But Juve struck first with Del Piero's whipped in free-kick glanced home by Cannavaro, who only returned to Turin from Madrid at the end of the last season.
Ronaldo spearheaded Real's fightback swapping flanks, taking all freekicks within range of goal, and finally playing the ball through for Raul to win a penalty just before the break.
The Portugal winger netted his first goal for Real from the spot against Liga de Quito on Tuesday, and bagged his second by fooling Gianluigi Buffon.
But Salihamidzic headed the winner for the Italians from a Del Piero corner just after the re-start and both sides hit the woodwork in an increasingly testy match.
It threatened to boil over near the end after Zdenek Gygera's ugly studs-up challenge raked Ronaldo's knee.
"There's no such thing as a friendly when you play Juventus," Real midfielder Guti told Spanish television station La Sexta.