Tommy Smith of New Zealand is given a yellow card by referee Carlos Batres for bringing down Daniele De Rossi of Italy on Sunday. (Streeter Lecka/Getty Images)

World champion Italy was aided by a controversial penalty in earning a 1-1 draw against New Zealand at the FIFA World Cup in Nelspruit on Sunday.

To watch the match highlights, CLICK HERE. To watch the full match, CLICK HERE.

The main storyline

What must they be thinking in Rome? Or Milan? Or Naples? Or Venice? Or Florence?

No doubt up and down the Italian peninsula tonight, families will sit down to their dinners of pasta and veal and rapini with a bottle of red wine, every person staring blankly at their plates and sipping from the glasses without saying a word.

And who could blame them, after watching their beloved Azzurri earn a draw against New Zealand — a country famous for rugby and cricket, not soccer — and needing a penalty to do it?

The reigning champions, currently ranked No. 5 in the world, were held to a stalemate by the 78th-best team on the planet. There is no greater indictment against this tired and aging Italian side that is clearly driving on the exhaust fumes of its World Cup victory four years ago.

Forget about the Italians conjuring the spirit of 1982, when they stumbled out of the gates and drew all three of their first-round games before coming alive in the knockout stage (where they recorded a famous victory over Brazil) en route to winning their third World Cup.

Coach Marcello Lippi must find another way to inspire this uninspiring collection of Serie A stars and do it now.

And the sooner he benches captain Fabio Cannavaro the better. The 36-year-old defender was again at fault when Shane Smeltz scored for New Zealand in the seventh minute off a set piece, in a play that bore a striking resemblance to the goal Italy conceded in a 1-1 draw against Paraguay.

Will Lippi take the bold move and insert Leonardo Bonucci in place of the aging Cannavaro for Italy's crucial final group-stage game? Time will tell.

Turning point of the game

Italy looked timid and short of ideas before defender Tommy Smith was called for the foul on Daniele De Rossi. After Vincenzo Iaquinta converted from the spot, the Italians were in full control and comfortably dictated proceedings the rest of the way.

Should the Italians have received the call? Smith tugged on De Rossi's jersey which, by the letter of the law, is a penalty — although it is rarely called. But De Rossi threw himself to the ground in a clear dive, and referee Carlos Batres bought the Italian's con job.

What this result means

Paraguay leads Group F with four points, ahead of Italy and New Zealand (two points apiece) and Slovakia (one point).

All four teams are still alive going into the final round of group-stage games. Paraguay only needs a draw to advance.

Man of the match

If not for the brilliant efforts of goalkeeper Mark Paston, the All Whites would have lost.

Save of the match

In the 70th minute, Ricardo Montolivo unleashed a venomous shot from 25 yards out that appeared to be destined for the far corner. But Paston made a great diving save, throwing out his right hand to deflect the ball out of danger.

The Italian perspective

"We're just sorry we didn't win a match we could have. If we didn't win against New Zealand, it's our fault. Once again the opponent scored on their first chance. We were able to control the game after that, but this was a match we should have won." — coach Marcello Lippi

The New Zealand perspective

"I'm very, very proud. We knew we'd be up against it, but we had great resilience and stayed organized." — coach Ricki Herbert

Next up

Italy takes on Slovakia in Johannesburg on June 24 (CBC, CBCSports.ca, 9:30 a.m. ET), while New Zealand meets Paraguay the same day in Polokwane (CBC, CBCSports.ca, 9:30 a.m. ET).