I believe that Xabi Alonso will be able to fix whatever is the problem in Real Madrid between the players. He will strengthen the club and close the bond between the players. He just took over the club from the former manager and needs time to work on the players. Winning UCL next season might not be possible for Real Madrid, but the team performance will be far better than their current performance.
All xabi need is time and the magic he did at Leverkusen will be brought to Madrid and we will see Madrid back to the good old days where they were the dreaded team across Europe, when they lifted the champions league back to back in a row. I also agree that he may not win the UCL in the coming season, it will even be better if the expectations on him is lowered so he will not look like he disappointed when he is unable to produce the kind of results expected of him within the shortest period of time.