Latest On Federal Investigation Of Cardinals
The Cardinals are currently under federal investigation for allegedly gaining illegal access into the Astros’ internal computer network, and Evan Drellich of the Houston Chronicle reports the latest wrinkle in the scandal. In addition to the previously known security breaches in 2014 and 2013, Drellich now has learned that the Cardinals accessed the Astros’ network as early as 2012, bringing light to a third and previously unreported breach.
Previous reports have indicated that the Cardinals employees in question gained access to Houston’s Ground Control system by utilizing a master list of passwords from when Jeff Luhnow and other execs were still with St. Louis, fueling speculation that Luhnow had neglected to update old passwords. The Houston GM told Ben Reiter of SI.com that any such speculation was “absolutely false,” continuing to add:
“I absolutely know about password hygiene and best practices. I’m certainly aware of how important passwords are, as well as of the importance of keeping them updated. A lot of my job in baseball, as it was in high tech, is to make sure that intellectual property is protected. I take that seriously and hold myself and those who work for me to a very high standard.”
In speaking to Reiter, Luhnow also addressed the supposed concern from Cardinals employees that he may have taken some proprietary information from St. Louis to Houston, denying that any such action took place and adding that he never received any sort of inquiry from the Cardinals on the matter. Luhnow says that his departure from the Cardinals was amicable, adding that many of his former colleagues were invited to and in attendance for his 2012 wedding.
Drellich has previously reported that the list of suspected Cardinals employees has been narrowed to four or five, and it seems at this point that the highest-ranking members of the Cardinals’ front office weren’t involved. Attorney Jim Martin, whose firm was retained by the Cardinals in February to perform an organizational review upon learning of the investigation, expressed confidence to the Associated Press that GM John Mozeliak and chairman/CEO Bill DeWitt, Jr. had no knowledge of the events. “With what we have done so far, I am 100 percent confident that this does not touch upper management,” said Martin.
Via Robert Patrick of the St. Louis Post-Dispatch, DeWitt himself addressed the media yesterday and said that he was “shocked” and “in disbelief” when he learned of the allegations. “There was zero knowledge until the FBI launched their investigation and we became aware of it,” said DeWitt.
The Chronicle reported earlier in the week that the investigation was in its latter stages, and Drellich explained in a followup piece last night that it would be the commissioner’s office — not a civil suit — that would determine the punishment for the Cardinals and award potential damages to the Astros. As Drellich explains, Major League clubs cannot file civil suits against one another, despite the fact that a former Department of Justice attorney who specialized intellectual property and commercial litigation told him the Astros “could have a case for theft of trade secrets.” The Cardinals cannot be fined more than $2MM as an organization, and DeWitt and other employees cannot be fined more than $500K. However, the commissioner’s office can punish the Cardinals by way of both the Rule 4 Draft (the yearly amateur draft in June) and the Rule 5 Draft, in addition to “other unspecified actions as the commissioner sees fit.”
Cardinals, Mozeliak Comment On Astros Computer Breach
5:53pm: In a followup interview with Bob Nightengale of USA Today Sports, Mozeliak states, “Unequivocally, I knew nothing about this.” Nightengale notes that in order to conduct the interview, Mozeliak was required to have legal counsel conference into the call. (That lawyer, Mike Whittle, advised against responding to whether or not Mozeliak felt any sense of responsibility for the alleged actions.) “I don’t know the outcome of this, or where it’s going to go,” Mozeliak continued, “but our hope is that when everything comes to light, people will realize that it wasn’t something that was organizational-wide.”
According to Nightengale, the Cardinals were aware of the investigation months ago but had hoped that it would stay out of the media. “I was surprised it came out,” said Mozeliak. “Not that I would not want it to come out, but the way it did, and the manner it did, did catch us off guard. We are responding accordingly.”
2:12pm: The Cardinals have issued a press release regarding the FBI investigation into the involvement of club employees in a reported breach of the Astros’ internal computer system.
St. Louis says that the organization retained the St. Louis law firm Dowd Bennett to conduct an investigation of the matter when it was made aware of the allegations several months back. Attorney Jim Martin, a former U.S. Attorney and white collar litigator with the firm, said that inquiry has yet to be completed. He explained that his firm and the organization will “avoid saying anything which would interfere with the government’s investigation” in the interim.
“These are serious allegations that don’t reflect who we are as an organization,” said club chairman and CEO Bill DeWitt Jr. “We are committed to getting to the bottom of this matter as soon as possible, and if anyone within our organization is determined to be involved in anything inappropriate, they will be held accountable.”
GM John Mozeliak also made a statement in the release, saying that “the alleged conduct has no place in our game.” Mozeliak continued: “We hold ourselves to the highest standards in every facet of our organization. It has been that way forever and is certainly true today. We are committed to finding out what happened. To the extent we can substantiate that these allegations have merit, we will take appropriate action against anyone involved.”
From the Astros’ perspective, Evan Drellich of the Houston Chronicle reported today that Houston is holding out the possibility of a civil suit against those ultimately determined to have perpetrated the impermissible computer access. “The Astros think it’s very serious,” a source told him.
That report also indicates that the FBI has looked into several addresses from which the unlawful access may have occurred, including both a house located in Jupiter, Florida (the Cardinals’ spring home) and one in a state that doesn’t host a major league club. Click here to find other recent developments as of late last evening. You can find the first post on the Cardinals’ involvement here and the original story on the leaked Astros trade notes at this link.
Latest On Investigation Into Astros Computer Breach
11:09pm: Apart from whatever criminal charges could arise, the league’s punishment of the Cardinals (if any) will depend upon “how high knowledge of [the] breach reached,” according to Passan (links to Twitter).
If the investigation reveals only a single “rogue employee,” there may not be any significant repercussions for the organization, says Passan. But severe penalties could result if top officials are shown to have acted improperly. The timeline of league action will be slowed by the fact that the FBI investigation remains private, Passan adds.
10:50pm: The FBI investigation into the breach of the Astros’ computer systems is in its final stages, according to the Houston Chronicle’s David Barron and Evan Drellich. A source tells the Chronicle that “the suspects [have] been narrowed to a group of four to five individuals within the Cardinals organization.”
Per the report, in addition to the 2013 breach discussed in the New York Times piece that broke the story of the investigation, impermissible access to the system also occurred in March of last year. That would seem to coincide with a report from Jeff Passan of Yahoo Sports indicating that the computer which gained entry to the Astros’ systems had been traced to a house in Jupiter, Florida — the Spring Training home of the Cardinals — which was occupied by multiple St. Louis employees. (Notably, also, the information released publicly appears to line up with the timing reported by the Chronicle.)
The Cardinals have conducted internal interviews with their personnel regarding the matter, Drellich adds on Twitter, and Derrick Goold of the St. Louis Post Dispatch notes that many members of the front office have hired attorneys. St. Louis released a statement earlier today indicating that the club “has fully cooperated with the investigation and will continue to do so.” Per Goold’s report, that included turning over computers to the FBI back in Feburary.
As things stand, it remains unreported precisely which Cardinals personnel are suspected of involvement with the actual computer breach — let alone what involvement organizational higher-ups may have had in the infraction, the public disclosure of information, and/or events subsequent. Needless to say, regardless of who is ultimately deemed to have committed the breaches, those questions will remain a source of intense interest going forward.
Cardinals Under FBI Investigation For Hacking Astros
9:57pm: The breach in the Astros’ computer system was traced to a home in Jupiter, Florida, where the Cardinals hold Spring Training, a source tells Jeff Passan of Yahoo Sports. Per the report, “a number of Cardinals employees used the house.” That could make it more difficult to determine precisely who accessed the database, though of course investigators surely possess means of acquiring that information.
Passan also notes that, per his source, “the breach involved more than taking old passwords” from Luhnow “and inputting them into a website.” Indeed, there were initially concerns in the league office that more information might ultimately be made public than has been revealed to date.
3:44pm: Cardinals front office officials are being investigated by the FBI in connection to the 2013 hacking of the Astros’ Ground Control database, reports Michael S. Schmidt of the New York Times. According to Schmidt, federal investigators have uncovered evidence which indicates that Cardinals officials were the ones to break into the Astros’ network and databases, leading to the compromise of trade discussions, proprietary statistics and scouting reports.
At this point, it’s unclear which officials are being investigated, but Schmidt reports that no one with the team has been put on leave, suspended or fired at this time. Subpoenas have been served to both the Cardinals and Major League Baseball. In a statement to Schmidt, a spokesperson for commissioner Rob Manfred said that MLB “has been aware of and has fully cooperated with the federal investigation into the illegal breach of the Astros’ baseball operations database.”
Schmidt continues to say that the “hacking” was rather low-grade, as it’s believed that Cardinals officials gained entry by using a master list of passwords from Jeff Luhnow and those who followed him from the St. Louis front office to the Houston front office. The current belief among investigators is that Cardinals officials were concerned that Luhnow took proprietary information from St. Louis’ Redbird system — a network similar to Ground Control — and applied the information to his new system in Houston.
Schmidt adds that some law enforcement officials believe the breach to be the result of “vengeful” Cardinals employees “hoping to wreak havoc” on Luhnow’s work in Houston. The Astros believed the hacking to be random and notified the FBI, who learned that the Ground Control network had been accessed from a home in which a Cardinals official had lived.
The breach ultimately led to a good deal of private Astros information becoming public knowledge, including trade discussions that brought a good deal of scrutiny on the Houston organization. At the time, the Astros issued the following statement:
“Last month, we were made aware that proprietary information held on Astros’ servers and in Astros’ applications had been illegally obtained. Upon learning of the security breach, we immediately notified MLB security who, in turn, notified the FBI. Since that time, we have been working closely with MLB security and the FBI to the determine the party, or parties, responsible. This information was illegally obtained and published, and we intend to prosecute those involved to the fullest extent.”
It remains to be seen what kind of punishments will be issued if the Cardinals are indeed proved to be behind the incident. However, this is certainly the type of offense that would cost executives their jobs, and there could very well be further legal repercussions for those involved, as well as further punishments issued to the organization by the league.
NL Central Notes: Cards Investigation, Dominguez, Wang, Schwarber
Commissioner Rob Manfred told reporters that it’s too soon to know how the league will handle today’s stunning news that the FBI is investigating the Cardinals for possible involvement in last year’s Astros computer system breach. As Evan Drellich of the Houston Chronicle was among those to report, Manfred declined to wade into the details of the matter and stressed that the federal government, not the league, was conducting the investigation. “To assume that the investigation is going to produce a particular result with respect to the Cardinals, let alone to jump to a word like cyber attack, we don’t know that those are the facts yet,” he said. “There is an ongoing investigation. We’ve been fully cooperative. Obviously any allegation like this, no matter how serious it turns out to be, is of great concern to us but it’s just too early to speculate on what the facts are going to turn out to be and what action, if any, is necessary.”
Here’s more from the NL Central:
- Adding Matt Dominguez through a waiver claim gave the Brewers options at third base both now and in the future, writes Tom Haudricourt of the Milwaukee Journal-Sentinel. The 24-year-old has an impressive pedigree, of course, and certainly has some upside for a team that’s all but out of it in 2015. But there is a more immediate concern, too: Aramis Ramirez could be dealt this summer, notes Haudricourt, and he’ll need a replacement if moved. Of course, the club also is in need of a future replacement with the veteran set to retire, and a look at the controllable Dominguez certainly makes sense.
- Of course, adding Dominguez meant that the Brewers had to expose lefty Wei-Chung Wang to waivers, which Haudricourt explains was a tough move to make. Milwaukee carried Wang on the active roster for all of 2014 just to take a shot on his future, but he was struggling badly this year at the Class A level. As Haudricourt explains, Wang is earning a relatively robust $300K salary (a larger salary cut from his 2014 MLB earnings was not permissible), which may be a deterrent — as is the fact that a claiming team would need to dedicate a 40-man spot (though Wang does have options).
- Cubs prospect Kyle Schwarber is expected to have a very short first taste of the big leagues, in large part because he is likely not ready to spend regular time in the field. But that’s probably also a good thing in the long term, given that Chicago continues to give Schwarber time behind the plate rather than giving up and choosing instead to acclimate him to the corner outfield. In fact, as MLB.com’s Carrie Muskat tweets, president of baseball operations Theo Epstein says the club is increasingly bullish on Schwarber’s chances at sticking as a backstop. “We’re more convinced now than ever that he’s going to catch and catch a long time in the big leagues,” said Epstein.
Brewers Claim Matt Dominguez, Designate Wei-Chung Wang
The Brewers announced that they have claimed third baseman Matt Dominguez off waivers from the Astros (Twitter links). To clear room on the 40-man roster, they’ve designated left-hander Wei-Chung Wang for assignment. Dominguez has been optioned to Triple-A Colorado Springs by the Brewers.
The Astros designated Dominguez for assignment last week in order to clear space on the 40-man roster for the promotion of top prospect Carlos Correa. In doing so, Houston effectively pulled the plug on one player for whom they very recently had high hopes in order to give a chance to a new young player. Dominguez was never as highly regarded a prospect as Correa, of course, but he frequented Top 100 prospect lists from 2009-12 as a member of both the Astros and Marlins organizations.
It’s easy to forget that Dominguez, who has spent parts of the past four seasons in the Majors, is still just 25 years of age. The Marlins first brought him to the Majors at just 21 years old and eventually traded him to Houston in the deal that sent Carlos Lee to Miami. Dominguez made a late-season appearance in Houston in 2012 and served as the team’s everyday third baseman in 2013-14.
That first season with an everyday gig proved to be his best to date, as he batted .241/.286/.403 with 21 homers. Despite the questionable OBP skills, Dominguez offered power and solid defense at third base, per DRS, producing 2.2 rWAR in his age-23 campaign. That’s a solid year, especially when considering his inexperience, but he took a step back in 2014, hitting just .215/.256/.330. That was concerning enough for Houston to bring in Luis Valbuena and Jed Lowrie in the winter, leaving Dominguez at Triple-A, where he continued to struggle (.251/.289/.371).
For the Brewers, though, they have little in the way of MLB-ready replacement options following the 2015 season when Aramis Ramirez retires. While Dominguez is far from a sure thing to provide them with above-average production at the hot corner — hence the DFA — he gives Milwaukee an experienced option with a good deal of team control remaining. Dominguez is all but a lock to be controllable through the 2019 season, as he’d need 110 days of MLB service to be eligible for free agency following the 2018 season, and there are only 111 days of the season remaining after tonight’s games.
With Ramirez’s name popping up in trade rumors as of late, it wouldn’t be a surprise if Dominguez eventually received an audition at the Major League level in the current season. That could theoretically push him into Super Two status and make him arbitration eligible this offseason, but his lack of recent offensive production would probably result in a relatively modest salary — especially when juxtaposed with Ramirez’s current $14MM price tag.
The 23-year-old Wang was a Rule 5 pick by the Brewers in 2013, and the team carried him on the roster through the entire 2014 season to avoid losing him, so the decision to designate him and again risk losing him was likely a tough pill to swallow. The Taiwanese southpaw pitched just 17 1/3 innings last year and yielded 21 runs, but given the fact that he was selected from the Pirates’ Rookie-level affiliate, those struggles shouldn’t be a stunning outcome. This season at Class-A Advanced, Wang has posted a 5.93 ERA with 6.7 K/9 against 3.4 BB/9 in 60 2/3 innings.
Quick Hits: Astros, Huntington, Reds, Nola
Collin McHugh‘s recent struggles have only sharpened the Astros‘ need for starting pitching help, Evan Drellich of the Houston Chronicle writes. McHugh has a 7.77 ERA over his last four starts, leaving ace Dallas Keuchel as the only truly reliable rotation option, as it’s asking a lot of rookies Lance McCullers and Vincent Velasquez to immediately help carry a playoff-contending team (though McCullers has been outstanding in six starts.) Here’s some more from around baseball as we head into the new week…
- Pirates GM Neal Huntington tells David Manel of the Bucs Dugout blog that the club will again “walk that balance between now and the future” in making any deadline additions. “We want to do everything we can to put this club in a position to make the playoffs this year, win a World Series this year. At the same time, we want to be able to be in that position as many years in the future as we can,” Huntington said. Pittsburgh will face a lot of competition in making deals only a few teams are truly out of the race at this point; as Huntington puts it, “this is absolutely a sellers market, at this point in time.”
- The rising costs of youth baseball has led to fewer young athletes choosing the game, Travis Sawchik of the Pittsburgh Tribune-Review writes. The Pirates value having versatile players who are able to play multiple positions, and the best fits for this model are those who played baseball and other sports growing up, so they have a larger athletic toolbox. With more youngsters specializing only in one sport growing up, however, these well-rounded athletes are harder to find.
- Despite the Reds‘ struggles, John Fay of the Cincinnati Enquirer doesn’t think manager Bryan Price’s job is in jeopardy. “It would be hard and foolish to fire Bryan Price given all the injuries” the Reds have had to deal with, Fay writes.
- Most scouts feel that the Reds wouldn’t trade Aroldis Chapman “if push came to shove” and they became deadline sellers, Nick Cafardo of the Boston Globe reports. There hasn’t been any indication that the Reds are willing to deal Chapman, though his name has at least been floated in talks with the Nationals.
- Also from Cafardo, some scouts following the Reds have mentioned Brandon Phillips, but while he’s having a good season, Cafardo feels the second baseman’s large contract is still a deterrent to a trade.
- The Padres, White Sox and Indians are three of the many clubs still relatively close to a postseason spot but unsure if they’ll be able to make a legitimate run, ESPN’s Buster Olney writes (Insider subscription required). San Diego’s situation is particularly tricky given their major winter expenditures and rival evaluators doubt that the Padres would engage in any major sell-off if they continue to struggle.
- Top Phillies pitching prospect Aaron Nola has been promoted to Triple-A, the club announced earlier today. Nola, the seventh overall pick of the 2014 draft, posted a 1.88 ERA and 6.56 K/BB rate over 76 2/3 innings at Double-A this season, with the only minor red flag being a middling 6.9 K/9. At this point, Nola seems well on pace to earn a promotion to the Show late this season.
Minor Moves: Pacheco, Coke, Young, White
We’ll track the days minor moves here:
- Catcher Jordan Pacheco has accepted his outright assignment with the Diamondbacks and will head to Triple-A Reno, Steve Gilbert of MLB.com tweets. The D-backs designated Pacheco for assignment last week after he hit .242/.333/.333 in 78 plate appearances.
- As expected, the Blue Jays have selected the contract of lefty Phil Coke, per a club announcement. Coke worked out of the Cubs bullpen earlier in the year, showing a big fastball and strong peripherals (8.1 K/9, 2.7 BB/9, 63.6% GB%) but struggling nonetheless to keep runs off the board. Toronto will hope that Coke can provide a useful southpaw component in the pen as the team assesses its options heading into trade season.
- The Braves have outrighted outfielder Eric Young Jr. to Triple-A, the club’s top affiliate announced on Twitter. Young, 30, has slashed just .169/.229/.273 in 85 big league plate appearances this year. After opening the season with a significant role, Young’s playing time dwindled to a trickle with his struggles and the resurgent play of late addition Cameron Maybin.
- Also headed to Gwinnett is righty Alex White, who has signed a minor league deal with the Braves just days after being released by the Astros. The 26-year-old, former top-100 prospect has not lived up to his pedigree in recent seasons. His stock had already fallen by the time Houston acquired him from the Rockies before the 2013 season, and Tommy John surgery caused him to miss that whole year. Since then, White has allowed over six earned runs per nine innings at the Triple-A level. This season, he struck out only 18 batters in 43 2/3 frames.
Heyman’s Latest: Twins, Mariners, Draft, Viciedo
Jon Heyman of CBS Sports’ latest column contains notes on every team throughout baseball. Here are a few highlights.
- The Twins are surprise contenders this year, and they’re open to acquiring a middle-of-the-order hitter, possibly an outfielder, Heyman writes. They could also seek relief help.
- After trading for Mark Trumbo, the Mariners seem to lack budget flexibility, which might be the reason they weren’t a serious contender for Rafael Soriano despite Fernando Rodney‘s poor performance this season.
- The Astros are expected to sign No. 37 overall pick Daz Cameron for about $4MM, Heyman notes. Cameron, who is committed to Florida State, fell in the draft due to signability concerns.
- The Marlins are close to signing first baseman Josh Naylor, the No. 12 overall pick in the draft.
- The Dodgers might have a tough time signing No. 35 overall pick Kyle Funkhouser. The righty could head back to Louisville for his senior season, much as Mark Appel spurned the Pirates a few years back so he could complete his degree at Stanford and re-enter the draft the following year.
- Free agent and former White Sox outfielder Dayan Viciedo has received offers for minor-league deals, but he’s holding out for a big-league contract, Heyman reports.
- MLB might think about moving the draft from Secaucus, New Jersey to a different location, perhaps Omaha. That would allow more top prospects to attend.
Trade Market Notes: Top Targets, Papelbon, Jays, Mets, Cueto
Jon Heyman of CBSSports.com ranks the top forty trade candidates around the league, adding observations and notes on each. Though he notes that clubs like the Red Sox and Orioles could potentially end up moving assets, Heyman restricts things to clubs that seem more likely than not to sell at this point. Cole Hamels of the Phillies lands in the pole position; though some top suitors remain unwilling to part with the top players targeted by Philadelphia, one GM tells Heyman that the club will probably be able to land a premium prospect for the lefty. He also argues that a deal involving Dodgers outfielder and Angels starter C.J. Wilson looks good on paper, though the teams have not discussed such an arrangement. You’ll need to read the whole post to take it all in, of course.
- The Blue Jays and Phillies have not discussed Jonathan Papelbon in the last week, Joel Sherman of the New York Post reports (Twitter links), adding that Toronto is looking at other arms at the moment. One name to watch, says Sherman, is Tyler Clippard of the Athletics, who Toronto had in-depth discussions about over the winter.
- It’s academic at this point, but Clippard also drew significant interest from the Astros over the offseason, Sherman further tweets. Indeed, Houston was “very close” to acquiring the veteran reliever, says Sherman, which raises the interesting question of what the Nationals would have received in return. Ultimately, the club took infielder Yunel Escobar in return, though that deal did not occur until a month after the Astros had already spent big on free agent bullpen arms, which could indicate that the prospective Clippard acquisition might have been contemplated earlier in the winter.
- Mets GM Sandy Alderson indicated that the club will not rely on a return from David Wright in making its summer moves, David Lennon of Newsday writes. Alderson said the club would not continue providing regular updates on Wright’s status, and said he would not be restricted in making moves. “Would we consider a third baseman who can’t do anything else?” Alderson queried. “Under the circumstances, yeah, we probably would. But we’re not just looking for any third baseman. It has to be something we think is an improvement that doesn’t cost us significantly.” The veteran GM continued to throw cold water on the idea of a move in the near-term, noting that the market was “narrow” and generally features underperforming players at this stage.
- C. Trent Rosecrans of the Cincinnati Enquirer discusses the Reds‘ current predicament, with Zack Cozart out for the season, Devin Mesoraco likely to join him in that regard, and Marlon Byrd sidelined for a significant stretch. Cincinnati should not allow its hosting of the All-Star game to slow its efforts to deal Johnny Cueto, opines Rosecrans, who suggests that the team could reap a larger reward by moving him now (both by selling more starts and, perhaps, by getting ahead of the market). Dealing Cueto, of course, would also increase the appeal of shipping out Mike Leake and Aroldis Chapman. Rosecrans concludes: “At this point, the organization doesn’t need to think about the All-Star Game, or even 2016. This is a long-term move and needs long-term thinking.”
- Though he’s a rental, Cueto is a true ace and should bring back a healthy return — even if it won’t be near what the Reds might have achieved last year (as Rosecrans explains). There should be no shortage of suitors, but MLB.com’s Phil Rogers lists the five most plausible landing spots: the Blue Jays, Red Sox, Dodgers, Rangers, and Padres.