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MLB Cardinals Facing FBI, DOJ Investigation For Alleged Hack On Astros' Internal Database

The MLB Cardinals "are the subject of an investigation by the FBI and Justice Department to determine whether club officials hacked" into the Astros’ baseball-operations database, according to a front-page piece by Derrick Goold of the ST. LOUIS POST-DISPATCH. The investigation "stems from a breach more than a year ago in the Astros’ database that houses scouting reports, medical information and other proprietary evaluations of players." No charges "have resulted from the investigation, though the revelation of its existence could change the Cardinals’ reputation and brand during an era of unprecedented success." The Cardinals declined to comment. MLB "has been involved in the investigation since it began a year ago." Commissioner Rob Manfred yesterday while speaking to reporters in Boston suggested that patience "should come before judgment because the investigation had not been completed." The individuals who are the focus of the investigation "are not known, though many members of the Cardinals’ front office hired attorneys as a result." In late February, the FBI "visited Busch Stadium and took computers as part of the investigation." It is "not clear how high up in the front office the investigation reaches" (ST. LOUIS POST-DISPATCH, 6/17). In N.Y., Michael Schmidt in a front-page piece cites DOJ officials as saying that internal discussions about trades, proprietary statistics and scouting reports "were compromised." Law-enforcement officials believe that the hacking "was executed by vengeful front-office employees for the Cardinals hoping to wreak havoc" on Astros GM Jeff Luhnow, who "had been a successful and polarizing" Cardinals exec until '11. The attack "would represent the first known case of corporate espionage in which a professional sports team hacked the network of another team." The Cardinals personnel under investigation "have not been put on leave, suspended or fired." The case is a "rare mark of ignominy for the Cardinals, one of the sport’s most revered and popular organizations" (N.Y. TIMES, 6/17). The Cardinals pregame show yesterday led with coverage of the scandal. FS Midwest’s Pat Parris led the broadcast reading a Cardinals statement, followed by an MLB statement on the issue, but he did not discuss the issue and quickly delved into an on-the-field baseball discussion (“Cardinals Live,” FS Midwest, 6/16).

HACKING AWAY ON DETAILS: In Houston, Barron & Drellich in a front-page piece cite a source as saying that there "were at least two separate breaches of the Astros' computer network." A source said that four to five individuals within the Cardinals organization "are a focus of investigators." Other sources said that the FBI "is expected to complete its investigation soon" (HOUSTON CHRONICLE, 6/17). In Houston, Evan Drellich reports the Astros' database at the time of the breach "was accessible at a website, groundcontrol.astros.com," though the club "has since moved to a more secure virtual private network, or VPN" (HOUSTON CHRONICLE, 6/17). Manfred: "To assume that that investigation is going to produce a particular result with respect to the Cardinals -- let alone to jump to the use of the word like cyber-attack -- I just think that we don't know that those are the facts yet" (MLB.com, 6/16). The WALL STREET JOURNAL's Brian Costa notes Astros Owner Jim Crane when he bought the club "started an exodus of front-office talent" from the Cardinals to Astros, "putting the two teams more at odds over brainpower than wins and losses on the field." Sources said that this competition "is at the heart" of what the FBI is probing (WALL STREET JOURNAL, 6/17). In N.Y., Schram & Sheehy cite a source as saying that investigators believe that some members of the Cardinals organization "feared that Luhnow took some of that proprietary data with him when he defected" to the Astros (N.Y. POST, 6/17). Also in N.Y., Red, Madden & Thompson note the investigation "carries serious repercussions if Cardinals personnel are found to have breached the Astros’ network and have possibly violated the Computer Fraud and Abuse Act" (N.Y. DAILY NEWS, 6/17). SPORTS ON EARTH's Will Leitch wrote this "wasn't just a matter of the Astros leaving a window and login open on their computer." It "was a proactive decision to hack in." Maybe the Cardinals execs "didn't use some crazy virus program to get in there, but that doesn't matter" (SPORTSONEARTH.com, 6/16). 

BIG TEST: USA TODAY's Jake Lourim wrote under the header, "Any Cardinals Discipline Would Put MLB, Manfred In New Territory." This may force Manfred to "take his first significant disciplinary decision in an area with virtually no precedent." While the Cardinals' alleged activities "didn't involve gaining a competitive advantage in a specific game, the information potentially runs much deeper" (USATODAY.com, 6/16). In Houston, Jerome Solomon writes under the header, "Alleged Hackers Of Astros Deserve Harshest Treatment From MLB." Solomon: "This is an integrity issue that ought to carry as stiff a penalty as gambling. MLB must send a message that such theft or attempted theft will not be tolerated" (HOUSTON CHRONICLE, 6/17). Fox Sports' Ken Rosenthal said, "My understanding is that if baseball imposes discipline, it more likely will be suspensions and fines than the loss of draft picks or ban on postseason play” (“Fox Sports Live,” FS1, 6/17). USA TODAY's Bob Nightengale writes Manfred "can issue any type of discipline he chooses." Nightengale: "He could fine the Cardinals' franchise up to $2 million. Take away draft choices. If nothing else, strip them of their competitive balance pick." Fairly "or unfairly," the investigation "lumps" the Cardinals in with the Patriots (USA TODAY, 6/17). ESPN's Keith Law said, "If I'm Rob Manfred or anyone in the Commissioner's office who is looking at this, I'm thinking more about the precedent in the future" ("Baseball Tonight," ESPN2, 6/16). NBCSPORTS.com's Craig Calcaterra wrote new commissioners, "especially ones who follow legends, often have some sort of early test of their authority." Manfred’s, "if the allegations are borne out, could be extraordinarily tough." Calcaterra: "Partially because of the unique and serious nature of the allegations. But also because, recently, there has been at least some indication that Manfred is still mindful and possibly unsure of his support among the owners." Depending on "how this all shakes out, Manfred may have to lay down the law against a team owned by one of baseball’s most powerful men" in Cardinals Chair & CEO Bill DeWitt Jr. (NBCSPORTS.com, 6/16). The N.Y. Daily News’ Bill Madden said Manfred is "going to have to come down heavy on these guys" (“Daily News Live,” SNY, 6/16).

HOUSTON, WE HAVE A PROBLEM: In Phoenix, Bob McManaman writes under the header, "MLB Needs To Throw The Book At The St. Louis Cardinals" (ARIZONA REPUBLIC, 6/17). In N.Y., Tyler Kepner cites front-office execs as displaying "widespread shock at the seriousness of the alleged breach, curiosity about who knew what within the Cardinals’ hierarchy and a general unease about the presence of a whole new style of dark arts." Informal sharing of opinions "is part of baseball tradition." But illegally accessing another’s database "goes well beyond the usual competitive boundaries." The Astros "should have been more careful about the security." But an MLB source said that this kind of breach "was almost inevitable" (N.Y. TIMES, 6/17). In K.C., Vahe Gregorian writes at first blush, it "sounds like the stuff of 'Dumb and Dumber' ... with a dash of spy thriller intrigue." Terms of the initial report are "reminiscent of the dynamics of Watergate." Gregorian: "Consider the brazenness of the act; the clumsy, unsophisticated nature of its execution; the apparently detached, rogue group that allegedly contrived it all through a home computer; and the sheer gratuitousness of it when no competitive advantage was needed" (K.C. STAR, 6/17). In DC, Svrluga & Nakashima note the investigation "represents a new level of cheating in sports." One MLB source said, "Oh my God. This is so much bigger than ‘SpyGate.’ If you have access to another team’s full data mix, it’s literally unlimited the advantage you could gain" (WASHINGTON POST, 6/17). ESPN’s Tim Kurkjian said, “I don’t think anybody has really seen anything quite like this, and this is stunning. ... It’s very unsettling if there’s a vendetta of any sort from someone in the Cardinal organization against Jeff Luhnow.” Kurkjian said MLB could not take away draft picks because it is forbidden in the CBA, but there could be a “big fine” and perhaps a “suspension for somebody" ("SportsCenter," ESPN, 6/16).

INFORMATION MACHINATION: In Pittsburgh, Rob Rossi writes information "is not safe in a society where advantages are sought at any cost." Sports "always end up reflecting society." Hopefully, people "take hacking more seriously now that it has invaded our sports world because we shamefully diminished it after hackers nearly wrecked" Sony Pictures (PITTSBURGH TRIBUNE-REVIEW, 6/17). In L.A., Bill Shaikin writes it "is impossible to overstate the role of computer systems in the operation of a team -- and not just on the business side." Angels GM Jerry Dipoto said that every team "has a proprietary data base, developed in-house or custom-designed for the team by a technology company." Dipoto said that he "was not overly concerned by the possibility of a hack into the Angels' computers, since baseball teams tend to differentiate themselves not by the information they collect but how they apply it." He added that the Angels' computer security precautions still "reflect the best practices of corporate America." Dipoto: "It's like walking into Ft. Knox" (L.A. TIMES, 6/17). In DC, Thomas Boswell writes it "would be hard to imagine how you could cheat in baseball on a bigger, more damaging or more potentially criminal scale" (WASHINGTON POST, 6/17). In Phoenix, Dan Bickley writes, "It's Hack-a-Franchise, the final frontier of cheating in sports" (ARIZONA REPUBLIC, 6/17).

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