Real Madrid fell to Basque club Real Union of the Segunda B (third tier), 3-2, in the first leg of the round of 32 of the Spanish Cup on Thursday.
Twice Real Union went ahead on goals by Juan Dominguez and twice Madrid, winner of 17 cup trophies, came back, on goals by Franco-Argentine striker Gonzalo Higuain and Argentine striker Javier Saviola.
Real Union stunned the Merengues a third time when Goikoetxea hit the winner in the 63rd minute.
It wasn't the first time Real Union has beat Madrid. The Irun club beat Real Madrid in the 1922 (twice) and 1927 semifinals and 1918 and 1924 finals.
On Wednesday, Villarreal lost to Poli Ejido, another third tier team, 5-0, and 2007 Spanish Cup champion Sevilla fell, 1-0, at another third-level team, Ponferradina.