Cristiano Ronaldo and Mesut Oezil scored the goals that secured the Spanish side a win over AC Milan.
“Things went bad tonight. But then Real Madrid are a world-class team. Our game went downhill in 90 seconds,” Allegri told Sky Sport Italia.
“We started to play, but maybe we did not play well enough. We had some chances, but we couldn’t score.
“We need to change that we are not bad enough when looking for a result.
“We had spaces to play how we wanted, but couldn’t. And we allowed them to come and steal good balls from us, this allowed them to crush us.
“After we played well and wide. Therefore I believe Real Madrid did well, but so did we.”