Indianapolis’ 27-14 loss at Buffalo on Sunday was the most surprising result of Week 1, but usually it would not be reason for concern.

The Colts lost their first two games last year, then won 11 of the next 14. They were playing in a city that has rejuvenated faith in its team thanks to new ownership and Rex Ryan, a brash coach known for elevating the play of his team early in his tenure.

And yet, Colts fans do have reason to panic. The franchise is — inexplicably — riled by controversy. Meaningless and silly but clearly impactful controversy.

According to CBS’ Jason La Canfora, Fox Sports’ Jay Glazer and longtime Indianapolis columnist Bob Kravitz, head coach Chuck Pagano — who was 33-15 in his first three seasons, with three playoff appearances — is fighting for his job. He and general manager Ryan Grigson are at odds, apparently over how much say Pagano has in personnel decisions. And owner Jim Irsay appears to have sided with Grigson (the guy who traded a first round pick for Trent Richardson, you’ll recall.) Irsay offered Pagano a measly 1-year contract extension with a minimal raise, according to La Canfora and Kravitz.

This sounds a little bit like the situation Jim Harbaugh found himself in last year with the 49ers. The biggest difference here is that the Colts happen to employ a once-in-a-generation talent at quarterback named Andrew Luck, and his presence should fix so many of these problems.

Chuck Pagano will never have the chance to coach a quarterback this good ever again. Ryan Grigson will never have the chance to build around a player this talented ever again. And yet they have allowed their festering relationship to become the biggest story in town. Pagano is an emotional coach who publicly battled and beat cancer, winning over fans and his players. This will tear apart the locker room.

But Pagano, the architect of Baltimore’s defensive turnaround in 2011, is also exactly what the Colts need. He should have been allowed to hire his own offensive coordinator — Pep Hamilton was a Grigson pick, according to reports — so that he could be more comfortable focusing his time on a defense that Grigson has failed to stock with enough talent.

Irsay came out of the locker room on Sunday to deny reports of discord within his organization. He has a poor history of telling the truth in situations like this, and sounds most often like a man accustomed to talking only to employees who have little choice but to believe him.

He’s easy to see through — and also a reason that big-name coaches will shy away from the Colts job should it come open. Irsay is apparently impatient with Pagano largely because the last time he lucked into having one of the top QBs in the game, Peyton Manning, his team won a lone championship.

If he’s decided Pagano is not the right coach to do better this time around, that’s his choice. But his handling of the situation — he could have easily extended Pagano to show public support, then fired him if the season went poorly — so far is threatening to derail what should be a promising season.

And he’s once against wasting the sort of quarterback most owners never get the chance to employ.