Moody resigned from his role at Palace on Thursday following our revelation

Scot had previously been after £7.5m for wrongful

Malky Mackay and Iain Moody have been reported to the FA and accused of being racist, sexist and homophobic in a shocking series of text messages dating back to their time together at Cardiff City.

Mackay, the former Cardiff manager, and Moody, the club’s former head of recruitment and now Crystal Palace’s director of football, appeared to be on the verge of being reunited at Selhurst Park on Wednesday, with Mackay thought to be replacing Tony Pulis.

But it is understood Mackay dropped out of the running after Palace learned of the evidence that has been passed to Wembley officials.

Moody, meanwhile, resigned from his role at Palace just hours after our revelations.

Reported: Malky Mackay is being investigated by The FA

Shock: Iain Moody, Crystal Palace's director of football and Mackay's former colleague, has also been reported

Exclusive: Chief Sports Reporter Matt Lawton's story in Thursday's Daily Mail

Revelation: Sportsmail broke the story of Mackay and Moody's text message exchanges

THE DAMNING MESSAGES 'Fkn chinkys. Fk it. There's enough dogs in Cardiff for us all to go around.' On the arrival of South Korean international Kim Bo-Kyung 'Go on, fat Phil. Nothing like a Jew that sees money slipping through his fingers' On football agent Phil Smith 'He's a snake, a gay snake. Not to be trusted' On an official of another club 'Not many white faces amongst that lot but worth considering.' On a list of potential signings 'I hope she's looking after your needs. I bet you'd love a bounce on her falsies.' On a player's female agent A picture entitled Black Monopoly (where every square was a "Go to Jail" square) Sent to members of Cardiff's staff Advertisement

After months of investigation, Sportsmail can reveal the details of two letters sent to the FA outlining explicit and offensive texts.

These messages came to light after a dawn raid on Moody’s south London home in March this year, as part of Cardiff’s £750,000 investigation into eight controversial transfers.

They engaged London law firm Mishcon de Reya, whose investigators obtained a search order from the High Court to enter Moody’s house in Balham, seizing work computers and phones and taking electronic imagery of evidence.

They were investigating alleged wrongdoing related to one of these transfers.

Around 70,000 text messages and 100,000 emails were allegedly recovered, including the text and email exchanges that form the basis of letters sent to the FA by Mishcon de Reya, on behalf of Cardiff.

Under FA rules, Cardiff are required to report any matters which may constitute ‘aggravated misconduct’.

The letters to the FA make reference to the following alleged offensive communications between Moody, Mackay and others:

Front-runner: Mackay was expected to be given the vacant manager's role at Crystal Palace

Out: But after hearing of the investigation Steve Parish (right, with Moody) and Crystal Palace pulled the plug

Shock departure: Tony Pulis left the Eagles last week after disagreements with the board over transfers

Revealed: Moody's house was raided as part of an investigation into Cardiff's transfers while he was at the club

Found: Around 70,000 text messages and 100,000 emails were allegedly recovered at the home

In July 2012, Cardiff signed South Korean international Kim Bo-kyung, but when Moody informed Mackay on July 12 that ‘five of the b******s including the player’ were arriving for talks, the reply from Mackay’s phone was: ‘Fkn chinkys.’ A further message says: ‘Fk it. There’s enough dogs in Cardiff for us all to go around.’

In reference to the prominent football agent, Phil Smith, a text states: ‘Go on, fat Phil. Nothing like a Jew that sees money slipping through his fingers’. The Israeli club, Maccabi Tel Aviv, are also referred to simply as ‘the Jews’.

A football official at another club is referred to as ‘a gay snake’ and ‘the homo’ and someone who is ‘not to be trusted’, while a French player is someone ‘who struck me as an independently minded young homo’.

An exchange with a young player who has a female agent makes reference to a sex act and states: ‘I hope she’s looking after your needs,’ the player is then told. ‘I bet you’d love a bounce on her falsies.’

On August 16, 2012, a list of players proposed by a French agent is forwarded, stating to Mackay that ‘he needs to rename his agency the All Blacks’. A separate text in reference to a list of French players states: ‘Not many white faces amongst that lot but worth considering.’

In a separate exchange a picture entitled ‘Black Monopoly’ is sent, with every square a ‘Go To Jail’ square. Of one African player, it is stated: ‘Doesn’t look like a good cv. And he’s Nigerian.’

Investigation: Cardiff were required to tell the FA, found by investigators from the Mishcon de Reya law firm

Slur: Mackay is alleged to have bad-mouthed incoming South Korean international Kim Bo-Kyung

Messages: Mackay exchanged texts with his colleague Moody

MEN AT THE CENTRE OF SCANDAL IAIN MOODY: As a graduate in French and Italian, Moody initially found work as a translator for the Italy side during Euro 96, before taking a staff writer’s position at Football365.com. In 2001, he made the move to Athole Still International, a London-based sports management franchise, then leaving to become Watford’s press officer four years later. It was at Vicarage Road that Moody first linked up with Malky Mackay, forming a close professional relationship that saw him soon promoted to football operations manager. When Mackay left for Cardiff in 2011, Moody followed, this time as head of recruitment. Cardiff reached the League Cup final in 2012 and were promoted to the Premier League a year later, but amid a protracted bust-up between Mackay and the club’s controversial owner, Vincent Tan, Moody was dismissed in October 2013. He was replaced by 23-year-old Kazakh Alisher Apsalyamov, who was at the club on work experience and a friend of Tan’s son. Crystal Palace were quick to appoint Moody as their sporting director, with a remit to improve their club infrastructure and to address weaknesses in player recruitment. Advertisement

Sportsmail understands Mackay and Moody were informed Cardiff were in possession of these messages earlier this year. At the same time the pair were informed of the findings from the club’s investigation into the eight controversial transfers — totalling around £50million — in summer 2013.

After his sacking last December, Mackay launched a £7.5m legal claim against Cardiff’s owner Vincent Tan for compensation and wrongful dismissal. But in May, Mackay suddenly dropped the claim and issued an apology to Tan. In a statement, Mackay said: ‘Today I have reached a settlement agreement dropping all claims I have made against Cardiff City Football Club. I did not want to be in litigation and believe that it is in the best interests of all parties to have a clean break and move on.

‘The club’s owner Mr Vincent Tan invested heavily in the club and supported our decisions in our push for promotion to the Premier League. Without him this would not have been possible. If I have caused any offence to anyone during this time, especially to Vincent Tan, then I apologise without reservation.’

Moody had been fired as Cardiff’s head of recruitment two months before Mackay’s departure. On the same day in May he also issued an apology to Tan. ‘Wherever mistakes were made during my time at the club, I wish to apologise for any part that I played in them, and for any offence I might have caused, particularly to Vincent Tan and all City fans,’ said Moody.

U-turn: Mackay dropped his suit for wrongful dismissal at Cardiff,apologising to owner Vincent Tan

Out of the blue: And Moody issued a statement to Tan on the exact same day as Mackay

MEN AT THE CENTRE OF SCANDAL MALKY MACKAY: A powerful centre-back with Queen’s Park, Celtic, Norwich, West Ham and Watford — winning five Scotland caps — he began his managerial career at Championship club Watford in 2009, after Brendan Rodgers resigned. He spent two years at Vicarage Road, safeguarding them from relegation, before moving to Cardiff in 2011. In his first season in charge of the Welsh club, Mackay, 42, guided them to their first ever League Cup final, which they lost to Liverpool on penalties and finished sixth in the Championship, though they missed out on promotion through the play-offs. Still, 2012’s heartache proved to be short-lived, as Cardiff were promoted to the Premier League as champions the following year. Despite his successes, however, Mackay’s relationship with club owner Vincent Tan became increasingly strained. The Malaysian businessman was reportedly dissatisfied with Mackay’s transfer dealings. Mackay was dismissed as Cardiff manager in December 2013. Advertisement

Two months earlier, Moody had also been ordered by Cardiff’s investigators to allow them access to his office at the Crystal Palace training ground in Beckenham, Kent. Mackay and Moody were encouraged by Cardiff’s lawyers to disclose the details of the racist, sexist and homophobic text messages to the FA. Ultimately, Cardiff believe they had no choice but to send a report to the FA.

Tan was widely and heavily criticised for sacking Mackay, a manager who was popular with Cardiff supporters, having guided the club into the Barclays Premier League for the first time.

There has been a long-running dispute between the two, with the Cardiff owner suggesting the club paid way above the market value for a number of players. The club spent £50m spent on the eight players that summer, but Tan believes the true market value should have been nearer £30m. The signings included £10m striker Andreas Cornelius, full back John Brayford and midfielder Gary Medel.

Tan and Cardiff executive chairman Mehmet Dalman enlisted the services of Mishcon de Reya, whose specialists represent a number of clubs in the Premier League.

Their investigation has resulted in around £3m being withheld in payments due to agents in deals authorised during Mackay and Moody’s tenure at the club.

Controversial: Tan was unhappy with many of the signings Mackay and Moody brought in with his money

Waste: Andreas Cornelius (left) and Gary Medel (right) were part of a £50m summer spending spree by the club

Under consideration: The transfer of Peter Odemwingie to Cardiff from West Brom was also investigated

MEN AT THE CENTRE OF SCANDAL VINCENT TAN: The bank clerk who became an insurance salesman. The insurance salesman who bought a McDonald’s chain. The McDonald’s store owner who built an empire. The story of Vincent Tan, 62, is fittingly colourful. He bought a McDonald’s franchise in 1980, using the money from rapid expansion to purchase Sports Toto in 1985, a gambling company. Unprecedented success on both fronts allowed him to venture into several more industries, most notably founding the Berjaya Group, which runs the gamut over Malaysian property development and holidays. In addition, he owns two football clubs, Cardiff City, relegated last season, and FK Sarajevo in Bosnia. Advertisement

The law firm are understood to have discovered a series of papers relating to certain transfers that were not included in official transfer documents. Investigators also discovered the authorisation of payments to agents for deals in which there was no evidence of their involvement. One £600,000 transfer included an additional £600,000 fee to an agent.

The transfer of Peter Odemwingie from West Bromwich Albion to Cardiff for £2.25m in September 2013 was among those investigated. Odemwingie was represented by Rob Segal and it is understood the two men are now in a legal dispute over the payment of agents’ fees, with the Nigeria striker’s subsequent move to Stoke also part of that dispute.

Some payments due in the Odemwingie move to Cardiff have been withheld by the club.

Segal insisted he was in a dispute with a 33-year-old in a case now heading for an FA tribunal.

Fans' favourite: Mackay was hugely popular in Wales, the fans were outraged when he was let go by Tan

Spygate: Sportsmail understands two Cardiff players colluded with Moody when Cardiff played Crystal Palace

TIMELINE OF THE INCREDIBLE CARDIFF ROW May 2010: Vincent Tan is the new owner of Cardiff City. June 2011: After Dave Jones is sacked following a Championship play-off semi-final defeat, Malky Mackay is appointed manager. February 2012: Mackay leads Cardiff to their first League Cup final, which they lose to Liverpool on penalties following a 2-2 draw after extra time. May 2012: Cardiff lose in the play-off semi-final again, but Mackay retains his post. Tan controversially decides that the club’s shirts should be changed from blue to red and the traditional bluebird emblem swapped for a dragon — causing huge unrest among the Cardiff supporters. September 2012: Tan replaces the club’s chief executive, Alan Whiteley (left), with associate Simon Lim. April 2013: Cardiff secure promotion to the Premier League, finishing top of the Championship. August 2013: After around £35million is spent in preparation for life in the top flight, Tan publicly tells Mackay to ensure there is a positive return on his investment. October 2013: Mackay’s head of recruitment, Iain Moody, with whom he had worked at Watford, is replaced by 23-year-old Kazakh Alisher Apsalyamov (right), reportedly on work experience, although he is unable to take the job on visa grounds. December 16: Cardiff beat West Brom in the Premier League and Mackay suggests to the Press that he will need three players in the January transfer window. Lim releases a statement on behalf of Tan that criticises Mackay for his comments and asserts that he will not be given ‘a single penny’ for transfers. December 19: Mackay is emailed by Tan, informing him to either resign from his position or be sacked. December 22: Cardiff release a club statement that Mackay will remain as manager ‘for the foreseeable future’. December 26: Cardiff lose 3-0 at home to Southampton, as fans stage a protest against Tan. December 27: Mackay is eventually dismissed as Cardiff manager. Advertisement

Not on: Cardiff are set to launch a legal claim over the incident last season

'Shocked and stunned' Mackay's agent Raymond Sparkes told Sky Sports News that he is 'shocked and stunned' by the events of the last 24 hours and that the Scot will fight the allegations. Advertisement

Sportsmail understands that in a week when the Premier League fined Palace for an alleged leak of Cardiff team information ahead of their match last season, investigators also seized documentation in the raids that reveals that two Cardiff City players were providing Moody with sensitive information about the club after he had left.

On Wednesday afternoon Moody was contacted by Sportsmail and he said: ‘I can’t make any comment at all. It’s obviously a legally privileged position at the moment.’ Mackay was unavailable for comment despite numerous attempts to contact him.

Moody was understood to be in discussions with Crystal Palace chairman Steve Parish on Wednesday afternoon.

The FA refused to confirm any details regarding the letters, and Cardiff also said they would not make any comment on the matter.

In a further twist, it emerged that Cardiff are now set to launch legal action against Crystal Palace and Moody in the wake of the spying scandal.

Reports in Wales say club officials sent legal letters to the Premier League club on Wednesday, along with Moody, informing them that they intend to pursue a claim now that the Premier League has issued its fine.

FULL LMA STATEMENT: MALKY MACKAY The LMA wish to clarify the position in relation to recent reports and speculation regarding matters alleged to have arisen during Malky Mackay’s time at Cardiff City FC. In the course of a search by the Club in early 2014 of 10,000 private text messages sent to and from another member of staff during Mr Mackay’s employment at Cardiff, in relation to other matters, it emerged that Malky had, it seems, sent a couple of one line texts that were, with the benefit of hindsight, very regrettable and disrespectful of other cultures. These were two text messages sent in private at a time Malky felt under great pressure and when he was letting off steam to a friend during some friendly text message banter. That said, Malky believes he could and should have conducted himself better on these two isolated occasions. The precise details need to remain private for the time being until any FA process is complete. The LMA does not condone in any way any potential breach of equal opportunities laws but would also point out that out of over 10,000 text messages and 70,000 documents produced over a long period of time it may not be a complete surprise that some inappropriate comments can sometimes be made by employees, like Malky, working under great pressure in highly charged situations. If Malky has caused any offence by these two isolated matters he would, however, wish to sincerely apologise. Malky finds it strange that these matters were only raised with the FA and in the media now, 8 months after his employment ended and the day before he was reported as being offered the opportunity to become manager of Crystal Palace FC. Malky is also very concerned about seriously inaccurate and misleading reports of his alleged involvement in these matters in the media. It has never been alleged that he wrote any homophobic or sexist messages and he has confirmed that he did not do so. Further, there are incorrect and damaging suggestions that he sent a whole host of offensive and unpleasant messages that are simply not true and which give a grossly distorted and unfair view of Malky’s involvement in this matter. Malky looks forward to matters being put straight in due course, following any investigation of this matter. Malky cannot of course comment on the nature of any conduct or communications alleged to have been made by others. Malky has said that he will be fully co-operating with any FA investigation and that he looks forward to putting the record straight thereafter. Advertisement



