Steve Sharman was proud of his team after Guernsey's Priaulx League lost 1-0 in extra-time to the Southern Amateur League in the FA Inter-League Cup.
Guernsey won the tournament in 2010, but the island's elite players now play for Guernsey FC in the English leagues.
"It was disappointing to lose a game, especially when the players have put so much effort in," Sharman said.
"The opposition were a better side, but purely because they're challenged at that level more than our players."
Jersey's Football Combination also bowed out 1-0 in the first round at the weekend, going down to the Essex and Suffolk Border League.