AT AROUND midnight last Wednesday the atmosphere outside the VIP lounge at the San Siro stadium in Milan was distinctly tense.

Two hours earlier AC Milan had touched a new low in a disappointing season when they were eliminated from the Champions' League after a 2-1 defeat by Norwegian side Rosenborg. So much for former Italian coach Arrigo Sacchi's return to Milan.

Outside the VIP lounge, the mood was ugly. Milan goalkeeper Sebastiano Rossi and French striker Christophe Dugarry skulked about uneasily in an underground passage, chatting to friends, refusing to do media interviews and waiting for the police to allow them out of the stadium.

Italian police know their soccer. They knew trouble was brewing and, promptly enough, it arrived. A group of so called Milan fans broke into the VIP lounge and began smashing everything that came between them and forward motion. The price of fan loyalty, at least at AC Milan it would seem, is nothing less than constant success.

Now, if Fabio Capello had been on hand to witness the scene, he might have been forgiven for allowing himself at least a wry smile. In the very week that Milan went out of European competition, Capello led Real Madrid to the top of the Spanish league with a 2-0 win over Barcelona.

Always a match underpinned by an intense sporting, political and regional rivalry, this year's game between the pride of Castile and Catalonia on Saturday was further inflated by the fact that it was a top of the table clash. Real went into the game as leaders, just one point ahead of Barcelona.

Capello, of course, had been the Milan coach for five seasons from 1991 until last summer, a period during which he led the side to four league titles and a Champions' Cup. Capello, however, broke with Milan 18 months ago when the club offered him a contract extension only on condition that he pull off "important" results - i.e. win the Italian League or the UEFA Cup.

Capello blew a gasket. He reckoned, not unreasonably, that his record over the previous four seasons was guarantee enough. He began looking for new employment and long before last season was over he had finalised lucrative terms with Lorenzo Sanz, the Real Madrid president. For £1.5 million per season, or thereabouts, Capello packed up and headed west.

Capello's arrival in Spain did not meet with immediate fan or media approval. However, problems with the media can always be resolved, and they were. Soccer problems are more complex and it took the Italian some time to sort out a new look Real Madrid squad which brought together midsummer signings such as Yugoslav striker Pedrag Mijatovic (Valencia), Croat striker Davor Suker (Scville), Dutch midfielder Clarence Seedorf (Sampdoria), Portuguese defender Secretario (Porto) and Brazilian Roberto Carlos (Inter Milan), all for the handy price of £19 million.

Significantly, all five played in Saturday night's win over Barcelona Even more significant was the nature of Real's win, based on a rock solid defence, on tight midfield cover and on a lethal counter attack. Those familiar with Capello's Milan in recent years know the pattern only too well.

So far this season, Barcelona have probably been more spectacular than Real. Under new coach, former England Ipswich Town, PSV Eindhoven and Porto manager, Bobby Robson, the Catalonian side have sparkled brightly, with Brazilian Ronaldo appearing worth all of his £14 million transfer fee from Eindhoven.

Against Real, however, Ronaldo disappeared in the face of typically disciplined "Italian" marking. Real new boys Suker and Mijatovic grabbed the goals in the 25th and 47th minutes respectively and Capello grabbed all the headlines.

Even the Barcelona sports daily, El Mundo Deportivo had to concede. "Real's collective game, their tight marking and closing down of the spaces annulled Barcelona's individual skills. Once again, Capello showed that he, rather than either Suker or Mijatovic, is Real's best buy of the summer. The Italian has transformed Real into a winning side, whether you like its style or not."

With only 16 out of 42 games played, Capello is far from home and dry. The season between now and next June is a long one. However, it has to be acknowledged that the Italian, in his first managerial experience outside not only Italy but outside AC Milan, has done very well, so far.

Capello's determination and his no nonsense methods do not always win him the love and support of his players, yet his methods clearly work. For the time being, at least, he is enjoying his Spanish experience.

AC Milan might be regretting losing Capello, but we can hardly say the same for Capello regretting losing AC Milan . . .