The Daily Mail says several significant figures at the club fear the manager's relationship with Malaysian millionaire Vincent Tan has been damaged beyond repair.
But Mackay will not walk away from the club he led to the Championship title last season, even though he is known to be furious about the decision to put his head of recruitment, Iain Moody, on gardening leave.
Mackay was last night understood to be livid, not just for the way he has been undermined but more fundamentally because he does not agree with the action against his close friend, a man he has singled out for praise many times.
Senior staff at the club only learned of the decision early on Tuesday afternoon, when an email to all department heads and select members of the football operation were told Moody was suspended pending an investigation. That situation was then amended a couple of hours later when it was said Moody would be placed on gardening leave with full pay.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball