CRYSTAL Palace's attempt to make Malky Mackay their new manager fell apart after details of alleged sexist, racist, and homophobic text messages sent by the Scotsman and Eagles sporting director Iain Moody were reported to the FA.
Two national newspaper reports suggest a dossier passed by Cardiff City to the Football Association surrounds Mackay and Moody's conduct while with the Welsh club, highlighting the offensive messages referring to players and agents.
The dossier also makes reference to the so-called 'spygate' row stemming from Palace's 3-0 win at Cardiff last season, where the relegated side's owner Vincent Tan accused the Eagles of obtaining advance information about team selection and tactics.
Around 70,000 text messages and 100,000 emails were allegedly recovered in a dawn raid on Moody's home in Balham, south London, this March, the Daily Mail has reported.
The raid was carried out after London law firm Mishcon de Reya obtained a warrant, as part of its investigation into alleged misconduct relating to transfer activity at Cardff.
Mackay and Moody looked set to be reunited at Palace, until talks dramatically collapsed on Wednesday afternoon.
It was initially suggested that a disagreement over the make-up of backroom staff had contributed to the u-turn, but tonight's revelations shed new light on why Palace have gone cold on Mackay – who just 24 hours ago seemed a shoe-in to succeed Tony Pulis.
Palace have made no official comment on their managerial position or tonight's allegations about Mackay and Moody. Some reports, however, suggest Moody is on borrowed time in SE25.
As it stands, caretaker Keith Millen is due to take charge of the team for Saturday's home game against West Ham. He is also set to face the media at a press conference on Thursday afternoon.
Millen is currently rated fourth favourite by the bookies to land the Palace job, after Tim Sherwood, Martin Jol, and Steve Clarke.