Malky Mackay and Iain Moody were reported to the Football Association by Cardiff City for allegedly sending a number of sexist, racist and homophobic text messages.
It has been reported that Cardiff chairman Vincent Tan sent a dossier of the alleged misconduct to the FA recently, and Mackay is believed to have missed out on the Crystal Palace job as a result of an impending investigation.
Moody worked alongside Mackay at Cardiff before becoming Palace's director of football, and both are being looked into as part of Cardiff's investigation of eight controversial transfers, according to the Daily Mail.
The report claims that Moody's house was searched as part of the investigation, with Cardiff spending up to £750,000 to recover the examples of misconduct from the pair.
However, the main subject of the FA investigation will reportedly be the offensive messages allegedly sent by the pair during their time in the Welsh capital.