Cunningham played for both clubs before he was killed at the age of 33 in a car accident.
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Before kickoff, Cunningham's son Sergio and his mother were presented with two jerseys bearing the Cunningham name from Pirri (honorary president of Real Madrid) and Martín Presa (president of Rayo Vallecano).
The gesture was initiated by Real chief and former striker Emilio Butragueno.
Sergio, who lives in Vallecas, revealed, "Butragueño called me and I spoke with him to confirm it."
Cunningham joined Real Madrid in 1979 from West Bromwich Albion, becoming the first British footballer to wear the white shirt. A year earlier, he had made history as the first black player to represent the England national team.