The departure of Macdonald heaped pressure on manager Lee who still had to win over the majority of the fans. Not that it appeared to bother him: "We're going in the right direction and we're doing it my way" .
He continued prophetically: "I've never lost confidence in my ability to coach and get people to play. If the moment ever arrives when I do I will walk out on this club".
Ron Lewin who resigned as first team coach during the summer begged to disagree: "there's only one way this club is going and that is down" he blasted.
The departure of Lewin allowed "ball boy" Richard Dinnis to move up to first team coach whilst George Herd took over the reserves and Iam McFaul looked after the juniors. Len Richley was Lee's assistant.
Lee increasingly helped out with the juniors, trusting Dinnis to coach his mantra.
Dinnis was delighted with the "freedom" he had been given to try out his own ideas within the "framework" that Lee had set up. Early criticism of the teams tactics did not faze him: "the amateur in me cries out that we have an obligation to spectators to entertain, while the professional side demands results"
But by December Lee decided he wanted to get involved in the first team again; something which caused friction between him and Dinnis who had been accustomed to looking after them himself. There were even suggestions that Lee was going to get rid of his coach
United had entered the Anglo Scottish Cup again and it had provided them with some competitive pre season friendlies But once the season was underway it was an incumbrance for a club with such a small group of experienced players
"I must be realistic and whilst treating the tournament with respect do what I consider best for Newcastle United" said Lee. That translated to sending a virtual reserve side to play away at Ayr. United lost 2-0 and were then fined £4,000 and chucked out the competition. Lee was "severely censured".
Dinnis' public attack on Graeme Souness after a challenge he made on Tommy Craig during the "derby" at Ayresome Park seemed pretty reasonable at the time.
But in their wisdom the board decided it was not acceptable and letters of apology from Dinnis and Westwood were sent to Ayresome Park and printed in the match programme. The players were incensed.
McFaul took over the reserves when George Herd resigned; however for differing reasons he also turned out for the juniors and the reserves and even the first team (Anglo Scottish Cup).
Frank Spraggon took over as Junior coach.
With £400,00 from transfers added to a £120,000 profit from the previous year Lee should have had money to burn.
But despite being linked with a whole host of players and admitting the squad needed more depth the only arrivals were Martin Gorry and Steve Hardwick.
Partick Thistle manager Bertie Auld who was "sick and tired of reading or hearing " that Newcastle wanted young star Alan Hansen. United watched him continuously but failed to make a move; they should "put up or shut up" blasted Bertie. Later Jackie Milburn would suggest that the reason a bid was never made was because Lee did not like Scottish players.
Just before the FA Cup match with Manchester City Gordon Lee informed the players that he was going to resign and take over at struggling, managerless Everton
Lee was to be paid £20,000 a year but claimed that money was not the reason for his departure in a confusing but philosophical resignation statement.
When Lee was asked whether he regretted his move as United headed for Europe he made his feelings very clear."They're (Everton) a big ambitious club that wants to be the best. I've got problems here but none of the frustrations I had in the North East. Everton act big as well as talk big".
It was thought that United would seek to replace him with another manager from the lower divisions. Names like John Neal (Wrexham), former coach Dave Smith (Mansfield) and Graham Taylor (Watford) were mentioned but in the end the directors made a failed attempt for the experienced Bolton manager Ian Greaves.
The players wanted Dinnis to be made manager but many of the directors were uncomfortable with the idea. It led to a remarkable stand off between the directors and players with Dinnis stuck in the middle . Sensationally "player power" eventually won the day and the board made Dinnis caretaker manager until the end of the season after the players passed a vote of "no confidence" in the board.
Blackburn chairman William Bancroft made a virulent attack on Lord Westwood who - in his position as President of the Football League - had banned Blackburn from signing any players due to the fact that Blackburn had not kept up with the payments for Glen Keeley.
Relationships between the two clubs were already at an all time low because the Lancastrians believed that United had poached Gordon Lee in the summer of 1976 and also that United were falsely claiming that Roger Jones was not fit to play professional football.
Roger Jones had signed from Blackburn in March 1976 but a wrist injury and a knee injury meant he had not played this campaign . Newcastle granted him a free transfer and he moved to Stoke. Significantly the deal agreed with Blackburn contained additional money based on the number of appearances Jones made. He played for another eight years.
Blackburn demanded a League inquiry into their dealings with United over the last 20 months. It was headed by Burnley's controversial chairman Bob Lord who famously said about Westwood when he was pipped to the post of League secretary that he'd "forgotten more about football than he ever knew"
Some semblance of peace had been restored but most people doubted whether the situation had been fully resolved. One person more certain than most was shareholder Malcolm Dix who wanted to call an extraordinary general meeting to pass a vote of "no confidence" in the board and demand the resignation of certain directors.
Somehow United had managed to get into the UEFA Cup but not all of the directors were happy; at least not according to Jackie Milburn. At least one of them had wanted the club to fail. Why? Because qualification put them under more pressure to appoint Dinnis.
Eventually, in a far from unanimous decision Dinnis was offered and signed a two year contract. His problems were unfortunately just beginning.
Storm clouds were already brewing before the season's end. Every single first-teamer bar new signings Steve Hardwick, Ralph Callaghan and Martin Gorry (none of whom had featured) was out of contract at the end of the season; even all the one year options had expired.
On a more positive note Joe Harvey was granted a well deserved testimonial.
A crowd of 14,000 was a Newcastle side beaten 5-2 by an International lX
But the real thrills were reserved for the testimonial dance at the Mayfair which must have been quite a night The highlights were the "incomparable Wilf Ray Orchestra", the "sensational sounds of Spring Time Harmony", a "marvellous demonstration of Rock and Roll (dancing) which really had to be seen to be believed".
And to top it all off: some beautiful dancing from Ian and Leona Morton who demonstrated "the intimate and sophisticated art of Latin American dancing" before they "surprised everyone by dancing a complete contrast, the Charleston".