The Astros Cheating Scandal and Compliance – Part 6: Final Thoughts on the Scarlet ‘C’

Thomas Fox - Compliance Evangelist
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While I could probably write for another month on the Houston Astros sign stealing scandal and the Major League Baseball (MLB) investigation into it, I should probably wrap this series up. This series has been largely based on the MLB Statement of the Commissioner (MLB Report) detailing the investigation protocol, findings, disciplinary actions taken and conclusions. Today I want to conclude with some final thoughts and reflections.

Culture and Why It Matters

For anyone who was paying attention to the Astros, it has long been clear that the team had a very insular and toxic culture. The Astros culture was broken, toxic and this culture lead directly to both the Taubman incident and the sign stealing, cheating scandal. The MLB report stated, “it is very clear to me that the culture of the baseball operations department, manifesting itself in the way its employees are treated, its relations with other Clubs, and its relations with the media and external stakeholders, has been very problematic. At least in my view, the baseball operations department’s insular culture – one that valued and rewarded results over other considerations, combined with a staff of individuals who often lacked direction or sufficient oversight, led, at least in part, to the Brandon Taubman incident, the Club’s admittedly inappropriate and inaccurate response to that incident, and finally, to an environment that allowed the conduct described in this report to have occurred.”

Where does culture start? At the top of course. Since the Owner was given a pass in the MLB Report, it must have started with General Manager (GM) Jeff Luhnow. You can ascertain Luhnow’s still defiant tone in his response to the MLB suspension and subsequent termination. Luhnow released a statement saying, “I am not a cheater” and that anyone who knows him can attest to his “integrity”. He blamed the players and then Bench Coach Alex Cora. How is that for tone at the top? It is also worth noting that when asked about this finding of a toxic culture at his Press Conference, Owner Jim Crane said he disagreed with that finding. Apparently, he was just as oblivious on that point.

Of course, this is on the heels of the Taubman incident, which was alluded to in the MLB Report.  The affair began when the (now former) Assistant General Manager of the Houston Astros screamed at a reporter, Stephanie Apstein and three other female reporters, about closer Roberto Osuna. The Astros initially claimed that this female reporter made up the story and refused to apologize or even acknowledge the error. Finally, Astros owner Crane submitted a statement to Sports Illustrated reporter Apstein, which read in full, “On behalf of the entire Astros organization, I want to personally apologize for the statement we issued on Monday October 21st. We were wrong and I am sorry that we initially questioned your professionalism. We retract that statement, and I assure you that the Houston Astros will learn from this experience.”

This toxic culture did not appear overnight. One might say that even trading for Osuna, when the team had a written zero tolerance policy against domestic abuse, is evidence enough of the Astros moral flexibility. Players thinking they could cheat with impunity comes from an organization which allows that sentiment to not only exist but be acted upon. Both Luhnow and Hinch were responsible for not stopping the sign stealing scheme. Hinch clearly knew about it when he damaged the monitor, not once but twice, with a baseball bat. Yet he never said anything. When the MLB Commissioner sent out his Memo in September 2017 making such sign stealing illegal, Luhnow did not even bother to circulate it or pass it along to Hinch, the players or the rest of the administrative staff.

The Investigation

The investigation was quite encompassing. Yet one of the things which struck me the most about it was the speed in which it occurred. The first report of the allegations was in an article published on November 12, 2019 and the MLB Report was issued on January 13, 2020. The investigation encompassed some 68 witnesses interviews, including 23 current and former Astros players; review of literally tens of thousands of emails, Slack communications, text messages, video clips, photographs and imaging of cell phones. There was swift and decisive action by the Commissioner in the form of discipline through the suspension of Luhnow and Hinch and the penalties assessed against the Astros. Obviously, you had a unique set of factors with a set of allegations confined to one team, with full cooperation of that team throughout the investigative process.

The thoroughness, speed and clarity should serve as a model for an investigative template going forward. It is clear that MLB wanted these allegations handled in such a manner. It should be studied by every Board of Director as a firm lesson in how a company can handle an internal investigation, if it has the desire to do so. There is no need for multi-year, multi-million dollar investigations. It was not indicated if outside counsel was brought in to handle this investigation; the MLB Report only noted that Commissioner Manfred “instructed our Department of Investigations (“DOI”) to conduct a thorough investigation”. If baseball can perform such a quick, expeditious and thorough investigation, it is hard to see why a corporation cannot do so if an ethics, compliance or Foreign Corrupt Practices Act (FCPA) allegation is brought forward.

Whistleblower Retaliation and Player Retribution

One final point I want to raise are the related issues of retaliation against the whistleblower Mike Fiers and retribution by non-Astros against the Astros players involved in cheating. Bob Nightengale, writing in USA Today, said, “The sentiment by former players, coaches and managers perhaps is not shared by the current rank and file, but they are more outraged and frustrated by Oakland Athletics pitcher Mike Fiers – baseball’s most famous whistleblower since Jose Canseco – than the actual exposure of the Houston Astros’ cheating scam.” Will Fiers suffer retaliation for stepping up and disclosing the sign stealing scandal? Michael McCann, writing in SI.com, said, “MLB will need to carefully monitor the treatment of players who go on record to reveal cheating… A whistleblower player who is unable to land a job might surmise that he is a victim of collusion, which would require evidence that two or more clubs conspired to exclude him from the game. Baseball has a long history with collusion, though in the context of suppressing wages for free agents not whistleblowing.”

What about rival players? Baseball culture has long afforded the opportunity for a pitcher or team to take retribution against opposing players who bend the rules. It usually takes the form of plunking a hitter of the rival team. In this case, all rival pitchers will know who was an Astro back in 2017 and those still with the team. What happens when a rival pitcher, who feels the Astros used their sign stealing scheme and hit a home run off that pitcher, takes his personal retribution and throws at that Astro player? What happens if he throws at his head?

Sound far-fetched? Not according to Ryan Glasspiegel, who cited to Buster Olney when he wrote in TheBigLead, “The fallout from the Astros’ cheating scandal is still mounting, and doesn’t show signs of slowing down anytime soon. One thing I hadn’t thought of but makes sense is a point that Buster Olney brought up on Get Up today: Opposing pitchers could throw at them all season like Ryan Dempster beaned A-Rod following his steroid suspension…It would be something to behold if Jose Altuve, Alex Bregman or other Astros start getting beaned regularly in retribution for sign-stealing (and perhaps other, more nefarious cheating as well). It is going to be a wild baseball season.” McCann, in his SI.com piece, noted, “If players are blackballed or shunned, or if whistleblower batters become targets for beanballs, MLB will need to address the matter with clubs and the MLBPA.”

Of course, the Astros players will now live the Scarlet ‘C’ of cheater attached to everything they do and everywhere they go. Perhaps that is enough of a penalty to pay. Yet that sanction was not enough to stop the Astros players from cheating in the first place and that was even when they knew it was wrong. When culture fails and even the basic ethics of not simply knowing right from wrong but not doing the right thing when faced with the easy choice; there must be consequences. Are the consequences laid down by the Commissioner enough to stop cheating in baseball going forward? I certainly hope so.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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