
Loading summary
Lindsey Graham
Hi, this is Lindsey Graham, host of American Scandal. Our back catalog has moved behind a paywall. Recent episodes remain free, but older ones will require a Wondery plus subscription. With Wondery, you get access to the full American scandal archive ad free, plus early access to new seasons and more. Join Wondery plus in the Wondery app or on Apple Podcasts. It's September 21, 2017, and a humid Thursday night in Houston, Texas at Minute Maid Park. Players for the Chicago White Sox are taking the field for the bottom of the eighth inning. White Sox relief pitcher Danny Farquhar jogs out to the mound for the first time in the game and takes a moment to gaze up at the stands. He sees a lot of empty seats and even more fans heading for the exits. It's late in the season and with the hometown Astros comfortably in first place, this is a fairly meaningless game. But not to Farquhar. He joined the White Sox only a month ago and he's eager to prove himself and protect his team's two run lead. So when burly pinch hitter Evan Gaddis steps up to bat, Farquhar takes a breath and looks toward home plate, waiting for the catcher, Kevin Smith, to feed him a sign. Smith gets into his catcher's squat, then flashes several fingers between his knees. It's a sign for a change up, a deceptive pitch that looks like a fastball but moves more slowly. It's designed to fool the batter and make him swing early. Farquhar nods. Then he winds up and hurls the changeup toward home plate. But Gaddis doesn't swing and the slow moving changeup curves out of the strike zone. It's ball one. As Farquhar gets the ball back from Smith. He frowns, thinking he heard something odd just before his pitch. A weird banging sound, but he shrugs it off and looks back to his catcher for the next sign. Smith flashes his pinky and signal for a fastball. Farquhar winds up again and sends a 94 mile per hour pitch screaming over the plate. This time Gaddis swings and misses for strike one. On the third pitch, Smith signals another change up and Farquhar nods again. But before he can even lift his leg for the wind up, he hears that banging sound. The ball leaves Farquhar's hand and again Gaddis doesn't swing at the pitch. It's ball two. Now Farquhar's getting suspicious. He wants to know where that banging is coming from and why it's only happening before certain pitches, but there's no time to investigate Now Farquhar throws three more pitches, a mix of fastballs and change ups. Sometimes he hears the banging, sometimes he doesn't. Gaddis swings confidently at each pitch, but hits them all foul. On the seventh throw, Smith signals for another changeup and Farquhar winds up. But when he hears the banging sound yet again, he drops his leg back down and steps off the mound. Smith jogs out from behind home plate and puts a protective arm around Farquhar. You okay, man? What's going on? Farquhar uses his glove to cover his mouth in case anyone on the Astros can read lips. They've got our signs. What do you mean? Every time you signal a change up, I hear two bangs over there in the dugout. Every time I throw a fastball. Silence. They've got the signs, Kevin. But there's nobody on second base right now. Nobody on the Astros can even see my signs. I don't know how they're doing it, but it's happening fast. Like you signal, I wind up and that damn banging happens. You think they have someone in the crowd? Farquhar looks around Minute Maid Park. He gazes at Astros fans scattered across the stadium and plenty of empty seats. The bright stadium lights shine down on them and countless black high tech CA cameras or pointed directly at the field broadcasting their every move. I don't know, man, but something's not right. I just know it. Well, what do we want to do? Let's plan our next four pitches right here. No signs. All right, give it a shot. Farquhar and Smith agree on the pitches, and Smith returns to home plate. Gaddis steps back into the batter's box and at the mound, Farquhar goes into his wind up. As he does, there's no banging from nearby, just the dull hum of fans in the stadium. He throws a changeup down and inside. This time. Gaddis swings and misses. Strike three. He's out for the rest of his time. On the mound, Farquhar hears no more banging, but the White Sox pitcher senses that something is happening over in the Astros dugout. It's one thing for a team to steal signs when they have a runner on second base who can see what the catcher is signaling. That's fair in baseball, but somehow the Astros seem to be stealing signs with no one on base. And that makes Danny Farquhar furious. Because the only way to do that is to cheat. American Scandal is sponsored by audible. I bet you heard that it takes 10,000 hours of practice to become an expert, right? Who came up with that? Malcolm Gladwell. In his book Tipping Point. It's an idea that becomes something of an axiom and brought criticism to Gladwell for oversimplifying complex social concepts. So what does he do? He writes a snarky follow up, Revenge of the Tipping Overstories, Super Spreaders, and the Rise of Social Engineering. Too bad the Audible title itself isn't 10,000 hours long, because there's more to imagine. When you listen as an Audible member, you choose one title a month to keep from their entire catalog. New members can try audible free for 30 days. Visit audible.com as or text as to 500 500American Scandal is sponsored by T Mobile 5G Home Internet with new home Internet plus from T Mobile, you can get Internet right where you want it so you can boost your connection to places it hasn't reached before and transform your home. Turn your backyard into a movie theater, turn your basement into a home office. For a limited time, get a free upgrade to T Mobile Home Internet plus while supplies last. Home Internet plus starts at just 50 bucks a month with autopay and any voice line. Check availability@tmobile.com homeinternet and get Internet right where you want it. During congestion, customers on this plan may notice speeds lower than other customers and further reduction if using greater than 1.2 terabytes per month due to data prioritization. After $20 bill credit plus $5 per month without autopay, debit or bank account required. Regulatory fees included for qualifying accounts. $35 connection charge applies from Wonder E Hi, I'm Lindsey Graham and this is American scandal in 2017, the Houston Astros accomplished something astonishing in Major League Baseball. In just four short years, the team went from being one of the worst in the league to clinching a World Series title. At the time, their meteoric rise was attributed not just to the Astros talented roster of players, but to the team's unorthodox general manager, Jeff Luno, who joined the team in 2011. Unlike most GMs, Luno didn't have a lot of baseball experience. Instead, he arrived in Houston with a business background and a philosophy of innovate or bust that drove the Astros to become one of baseball's most successful franchises. But after their 2017 World Series victory, once the champagne was gone and the confetti swept away, a very different picture of the Astros winning strategy began to emerge. Luno's emphasis on innovation happened at a time when Major League Baseball was colliding with cutting edge technology. Competitive advantages were being carved out in ethical gray areas, and Major League Baseball was scrambling to keep up. Sign stealing had long been a legal practice within the game, as long as it was done by players on the field, but it slipped into uncertain territory with the advent of high speed cameras and video replay rooms. Eventually, this new technology and its potential to be used in secret to gain an advantage would lead to some of the most spectacular cheating scandals that Major League Baseball had ever seen. And while other teams were caught stealing signs illegally in the 2017 season, no team embraced the practice quite like the Houston Astros. The investigation that followed would forever alter the lives of those involved and level a lasting accusation against the Astros that they were cheaters, a team that was willing to win at any cost, and that they didn't deserve their World Series championship. At the time of the sign stealing scandal, baseball fandom was already in decline, attendance was down, and viewership had been steadily slipping since the late 2000s. The explosive Astros cheating scandal led many to wonder if the death knell had been sounded for America's favorite pastime and if modern baseball could ever recover. This is episode one Radical Methods it's 2003 in Oakland, California. Robert Holloway shuffles forward in the concessions line at the Oakland Coliseum, squinting at the menu. Holloway is a British businessman, and he's seen better dining options. His choices are peanuts, hot dogs, and shining jumbo pretzels that look like they've been sitting under the heat lamp for a few hours too long. But Holloway didn't come here for the food. He came to get to know the man standing in line next to him, Jeff Luno. Luno and Holloway work together at Archetype Solutions, a Bay Area tech company where Holloway is CEO and Luno is chief operating officer. But Luno is shy and reserved around the office, and Holloway has noticed the only thing that really brings Luno out of his shell is talking about baseball. So Holloway agreed to this adventure at the ballpark as a way of getting to know Luno a little better. Well, Jeff, how long have you been following baseball? Oh, my whole life, really. But what really hooked me was when I joined a fantasy baseball league at Penn. Fancy baseball. What, like in a Brooks Brothers suit? No, not fancy. Fantasy. You make up your own fictional team with players in the league and then watch how your teams perform throughout the season. How can you tell how they perform? Your team doesn't exist. Nah. But each player's stats do, and their collective stats determine your team's performance. Baseball is a really beautiful sport, but underneath all that beauty is a lot of raw data, and I think I love that even more well, the company numbers guy is a baseball numbers guy. That makes sense. I guess. I've always had a mind for it. I mean, it's kind of embarrassing, but after graduating from Penn, I actually wrote a letter to the owner of the Dodgers asking if they had a job opening for someone with a mind for numbers. And what they say? I never heard back. Well, their loss is my gain. I mean, are you still playing fantasy baseball? Oh, yeah, sure am. You want in? We're already into the season, but I'm sure we could. Does that mean I have to watch every game? Well, not watch necessarily, but you have to track every game, make sure you get the stats for all the players on your team. For me, it's almost like a part time job. That's not a distraction for you, right? Luno grows quiet. The men step forward again, finally reaching the register. And Holloway realizes he might have sent his reserved COO back into his shell. So he backtracks. I just, you know, want to make sure my numbers guy keeps us winning this season. Oh, yeah, of course. Rob Holloway watches as Luno places his order. But he seems nervous, as if he believes he just revealed too much about his personal interests. And truth be told, Holloway still doesn't really understand his bespectacled COO's obsession with this strange American game. But everyone needs a hobby, even if it apparently involves the same kind of number crunching Leno excels at in his day job. Early in his career, Jeff Leno's affinity for data and analytics helped him climb the ladders of corporate America, but the game of baseball remained his deepest and most enduring passion. Luno was first introduced to the game by his mother while the family was living in Mexico, where Luno was born and raised. Watching, playing and discussing America's pastime was a way for her to ensure that her sons maintained a connection to her home country. And with young Jeff, the effort worked. Years later, Luno earned undergraduate degrees in engineering and economics at the University of Pennsylvania and then an MBA from Northwestern. But all the while, he continued to hope that one day he'd work in Major League Baseball. But his education and experience in corporate consulting and tech startups didn't really point to a new job in the sport he loved. Luno's fortunes begin to change in May of 2003 with the publication of a book that blows traditional approaches to baseball out of the water. Moneyball by Michael Lewis follows general manager Billy Beane and the Oakland Athletics through their spectacular rise in 2002. The book also lays out the a's strategy for building a successful baseball team. This strategy, called Saber metrics, throws out over a century of baseball tradition in favor of a more modern, data driven approach. Instead of evaluating players based on their physique or athletic prowess, Sabermetrics focuses on a few key statistics, like on base percentage, to determine a player's true potential. Using this strategy, Billy Beane is able to identify undervalued players and build a winning roster despite having one of the league's lowest budgets. But Bean's methods have many detractors. Scouts believe the approach discounts the intangibles when it comes to assessing players. Some even argue that it robs baseball of its soul. But for Luno, Moneyball is a revelation. The Sabre Metrics approach marries two of Luno's strengths, his knowledge of baseball and his gift for analytics. And when Luno finishes reading the book, he starts to wonder if there actually is room in the baseball industry for a guy with his background. In August of 2003, he gets an answer to that question. Luno is in his office at Archetype Solutions, going through emails and preparing reports when something catches his eye. It's a message from someone Luno recruited years ago when he worked at the prestigious management consulting firm McKinsey. Luno opens the email and quickly scans it. The former colleague writes that he just got married and his new father in law, the owner of the St. Louis Cardinals, Bill DeWitt Jr. Would like to talk to Luno. Luno can't believe what he's reading, the colleague says. DeWitt is going to bring some fresh blood into the Cardinal's front office, and he wants someone who can bring a Moneyball approach to the team's recruitment efforts. Since the colleague remembers Luno being a fantasy baseball whiz when they worked together at McKinsey, he thought maybe Luno was the guy to do it. Luno leans back in his chair. It's been two short months since he first read Moneyball. Now, as if by fate, an opportunity has fallen from the sky into his inbox. Still, Luno's hesitant. DeWitt is apparently looking for someone with Luno's skill set, but Luno has never actually worked in baseball, and he's seen how the Moneyball approach has stirred up controversy in the sport. So Luno isn't sure he'd be welcomed by a major league team like the Cardinals. But there is only one way to find out. He clicks reply and begins to draft a response, trying not to let his excitement spill over into his writing. And despite his apprehension, Luno confidently ends the email with a question, when would Bill like to meet? And then he hits send. One month later, Jeff Leno finds himself sitting in the office of Cardinals owner Bill DeWitt Jr. On the outside, the St. Louis Cardinals don't appear to be a team in need of a data driven overhaul. Since 2000, the cardinals have routinely made it to the playoffs. But DeWitt is unhappy with the team's draft system, which selects young players to join the club's minor league teams and work their way up to the majors. Their drafts simply haven't produced enough major league stars. Most of the Cardinals best players are veterans with high salaries acquired through free agency or trades with other teams. So DeWitt has come to believe that a better use of data could give the Cardinals an edge in the draft. And after their meeting, DeWitt's convinced that Luno is the guy to make it happen. DeWitt offers Luno the position of vice president of baseball development, and Luno accepts. His fantasy of working for a major league ball club has become a reality, but Luno's first season in the MLB is a quiet one. He spends 2004 gathering data on the Cardinals team operations, approaching it with a business mindset. Then DeWitt promotes Luno to scouting director, a position that will finally give him the power to shape the team with his own brand of analytics. But soon it becomes apparent that Luno's unorthodox approach is going to ruffle some feathers within the Cardinals organization. In early 2005, right in the middle of spring training, Luno calls members of the Cardinals coaching staff into a conference room for a seminar on pitching. Already, this is irksome to the team's legendary pitching coach, Dave Duncan. Duncan started his career as a catcher in the 1960s before becoming a coach in the late 70s. Since then, he's developed a reputation for getting the best out of his pitchers with tried and true techniques that have worked for decades. So when Duncan sits down in this conference room and hears Luno introduce the guest speaker of the day, he's absolutely baffled. Today's presentation will be given by a cartoonist from New Yorker magazine named Mike Whitty. According to Leno, Whitte has created his own theory on pitching mechanics based on years of experience in sketching pictures, Duncan folds his arms tightly across his chest and tries to contain his anger. As Whitty pulls out his sketchbooks and begins showing his work to the pitching coaches in the room, Duncan glances over at Luno and sees him grinning in delight. He's clearly proud of himself for this time wasting experiment. Duncan has been aware of Luno's presence in the organization, but between Luno's button down shirts and muted tone in meetings, the new scouting director hasn't left much of an impression. Luno strikes Duncan as a corporate suit who read Moneyball once and now thinks he's figured out the sport. So Duncan's tried to ignore Luno for the most part, choosing instead to focus on what he does best coaching pitchers. But this meeting is crossing a line. Luno is disregarding Duncan's deep knowledge of the game and bringing in a cartoonist to tell him how to do his job. But Duncan holds himself together. Once this ridiculous presentation is over, he'll get back to coaching his pitchers in the way that's worked for decades. As for Luno, Duncan has seen scouting directors come and go, so he can't wait for all this muddy ball nonsense to blow over so they can get rid of interlopers like Jeff Leno and focus on the important matters like winning a World Series. American Scandal is sponsored by Uncommon Goods Spark something uncommon this holiday with just the right gift from Uncommon Goods. Incredible hand picked gifts for everyone on your list. Gifts that spark joy, wonder, delight. And that it's exact what I wanted feeling all in one spot. Like what my wife found recently. She loves puzzles and she adores Advent calendars. So Uncommon Goods Jigsaw Puzzle Advent calendars. Well, that's two great tastes that taste great together. And when we shop at Uncommon Goods, we're supporting artists and small independent businesses. Many of their handcrafted products are made in small batches, so better shop now before they sell out this holiday season. And with every purchase made at Uncommon Goods, they give back $1 to a nonprofit partner of your choice. So far, they've donated more than $3 million. And that' Uncommon Good. To get 15% off your next gift, go to UncommonGoods.com as that's UncommonGoods.com as for 15% off, don't miss out on this limited time offer Uncommon Goods they're all out of the ordinary. American Scandal is sponsored by Aura Frames. Now here's something that I know is true. The people we love most are the most hard to shop for. Luckily, there's one gift that probably everyone on your list is sure to enjoy. An Aura Digital picture frame named number one by Wirecutter. Because Aura Frames makes it incredibly easy to share unlimited photos and videos directly from your phone to the frame, no matter where it is. So when you give an Aura Frame as a gift, you can personalize and preload it with a thoughtful message and photos using the Aura app, making it an ideal present for long distance loved ones like grandma or that aunt whose birthday you forget but who always remembers yours. It's a gift so special that they'll use it every day. And Aura Frames come in a variety of styles and colors so you can be sure to match the taste of anyone in your life. And trust me, it's the easiest way to share back to school photos cute Halloween costume photos that video you took over the holiday. Anything that you think your friends and family might smile at can be sent to their Aura frames almost instantly. And for a limited time visit auraframes.com and get $45 off Aura's best selling carver Matte frames by using promo code as at checkout that's a U R A frames.com promo code as this exclusive Black Friday Cyber Monday deal is their best of the year, so don't miss out Terms and conditions applied in 2005 pitching coach Dave Duncan and many others at the St. Louis Cardinals believe that Jeff Leno's days in baseball will be short and unremarkable, but it doesn't take long for Luno to prove them wrong. The following year, owner Bill DeWitt Jr. Promotes Luno again to a new vice president position, putting him in charge of both amateur scouting and player development in the minor leagues. Despite the sometimes bizarre perspectives he brings to meetings, Luno continues to enjoy the support of the Cardinals owner, and the team continues to be one of the league's Most successful. In 2006, they win the World Series. Luno can't take much credit for the victory because most of the young players he's drafted and developed have yet to play in the majors. But for DeWitt, it's a sign that the team is trending in the right direction. And for the next three years, Luno continues to push his data driven approach to recruitment and development, bringing in outside the box analysts including a former NASA engineer named Sigma Dell. All the while, clubhouse veterans snicker behind Luno's back, calling the bookish, bespectacled vice president names like the Accountant or even Harry Potter. But despite such resistance and disrespect, Luno tries to get along with the baseball old timers. He understands that there's value in the experience and wisdom they bring to the table. So when it comes to the draft, he pursues a hybrid approach. He orders Mel to develop a player evaluation tool that combines data heavy performance analysis with insights from veteran scouts. He also makes sure to include these scouts in his draft meeting meetings so their voices can be heard as the draft unfolds. Still, conflicts between the old and new continue, especially in the June 2009 draft, when teams around the league take turns selecting new young players. As always, Luno leads the Cardinals draft from the front of a large conference room at Busch Stadium, the team's home park. He stands in front of a magnetic whiteboard covered with more than a thousand magnets, each representing a potential draft pick. Scouts sit around a conference table at the front of the room, twirling pens on their fingers and spitting dip into empty soda cans. As their turn approaches, Luno and his scouts and analysts rearrange the names on the board, shifting their priorities depending on which players are still available. Usually, everyone agrees on a pick before it's the Cardinals turn. But as the time grows closer for the team to make its third round pick, the room is split between two players, a power hitting outfielder, Angelo Sanko and pitcher Joe Kelly. Sitting among the analysts and their laptops at the back of the room, sigmaidel speaks up and says that according to their algorithm, Kelly does not look good. He's shorter than the average big league pitcher, and his college stats are average at best. But the scouts sitting at the front of the room? Disagreeable. One of them points out that everyone who's watched Kelly pitch, including Luno, has been blown away by his fastball, which can almost reach 100 miles per hour. He has what scouts simply call great stuff, pitches that even a major league batter would have trouble hitting. With a little coaching, the scouts believe that Kelly can become great. Maidel says that may be true, but he's not great now, and Sanko is. Statistically, Sanko is the safer pick. Luno lets the argument play out, but deep down he'd like to take Mel's side. He trusts analytics, and if he were playing fantasy baseball, he'd take Zonko over Kelly every time. But when it comes time to make the call, Luno ultimately chooses Kelly, trusting his scout's gut feelings. Looking across the room, Luno can see that Meidel is disappointed. So after the scouts have filed out of the draft room, he pulls Mel aside to talk about the decision. Luno starts off by emphasizing that he still supports Mel's analysis, but there are intangibles the data can't account for. Before Luno can say anything else, Mel says he gets it. For all their efforts to combine Mel's analytics with intuitive insights on the scouts, Medel recognizes that there is still conflict. It's even reflected in where everyone chooses to sit in the draft room, the analysts in the back and the scouts up front, they're just different tribes. Luno is relieved to hear that Mel understands the dilemma, and he confesses that he's still struggling to find a way to get everyone in the organization to buy into the analytical approach. He feels like he spends more time resolving internal conflicts than he does actually making good, data driven decisions. So Luno sighs, saying it's like he has all of the ingredients at his fingertips, but the recipe for a truly optimized team still feels out of reach. He doesn't tell Mel this, but deep down, Luno knows that the Cardinals are just too successful, too set in their ways, to experiment with the kind of new approach he thinks they need. An experiment, by definition, is trial and error, and the Cardinals are winning. They can't afford error. So if Luno really wants to push this thing to its limits, he'll need to have total control over the team and total buy in from the front office. To get that, he needs to find a team that he can run more like a startup, a team so bad that the idea of tearing it down and building it back up again would be a welcome change at the end of the 2011 season, one of the worst teams in baseball gets a new owner when billionaire businessman Jim Crane by the Houston Astros. Established in 1962, the Astros enjoyed hot streaks in the 80s and 90s and even made a trip to the World Series in 2005. But they've never won a championship, and after 2006, the team fell into decline, routinely putting up more losses than wins. The 2011 season was their worst yet, with the team losing over 100 games for the first time in the franchise's history. But the team wasn't just losing games, they were also losing fans and losing money. Attendance had dropped every year since 2006, and the team's costs outstripped its revenues by $12 million in 2010. Still, along with some minority stakeholders, Jim Crane pays $680 million to buy the team, the second largest price tag ever for a major league club. This is probably because where others see a losing franchise, Crane sees opportunity. He earned his fortune in air freight logistics, an industry where data is crucial to success, and he believes the same data driven approach can turn around the Houston Astros. But the team needs new leadership. So as soon as the ink on the contract is dried, Crane fires the team's general manager, Ed Wade, clearing the path for someone new. In Crane's mind, the Astros are nothing more than a failing Business. And to turn it around, he needs change, starting with a GM who's willing to do things differently. So when Crane begins his search, he recalls a meeting he had several years back with a member of the St. Louis Cardinals staff, Jeff Luno. Crane knows Luno isn't the conventional pick for a gm. He's a scouting director, and he spent more time in fluorescent lit offices than on the freshly cut grass of a baseball field. But Leno has the business background that Crane believes might complement the Astro's new direction. So in the fall of 2011, Crane calls to arrange a meeting with Leno. The very next day, the two men meet in Crane's still undecorated office to discuss the Astro's potential. And as Luno sits down, Crane notices a stack of papers under Luno's arm. I appreciate you meeting on such short notice, Jeff. Well, opportunity calls, and I answer. And I can see you brought a book report with you. How many pages is that? 23. It was 25 originally, but I tightened it up some. And you put that together in just the last day? Well, sir. No, please, Jeff. None of that sir stuff. Okay, Mr. Crane. No, no, Jim. Oh, okay, Jim. Well, I believe this team can be turned around, and I believe I know how. Luno opens up his 23 page proposal and points to a detailed decision tree. The first thing the Astros need to do is stop spending millions of dollars on players who aren't producing results point blank. I don't care if they're a fan favorite. They have to go. The players on a baseball team are an investment, and we need to make sure our assets make sense long term. That means thinking differently from the draft to our free agent deals. Yeah. And what does different look like to you? Well, to me, it looks like letting go of magical thinking and sticking to the data. Just the cold, hard facts of how a player performs on the field. And that data is available. It's all at our fingertips. We just have to set emotion aside and take advantage of it. Sounds a bit ruthless. Maybe to some. Well, I appreciate your frankness. I mean, you can't make real change when you're busy walking on eggshells. I know that. But tell me, why did you take this meeting? Are the Cardinals not listening to you? Well, my views on how to run a baseball team have not always been embraced in St. Louis. I'd rather come work for an organization that wants to try a different approach. And that different approach for the Astros is what? Sabermetrics? Moneyball? I'm talking about something that goes beyond Moneyball, something that gets this team its first championship. I mean, the Oakland A's succeeded with Moneyball, but they didn't make it to the World Series. We have to think bigger than what's already been done. We need to innovate and then keep innovating. To me, that's how you win a championship. Crane leans back in his chair. He's impressed by Luno, but still somewhat wary. He's a scouting director from St. Louis, and right now he's sounding almost overconfident. Well, here's a more serious question, Jeff. What are the risks? Well, the short term is basically all risk. We risk losing games, we risk losing a lot of them. We risk pissing off the fans. They won't understand what we're doing. And we risk the pain of change in this organization. All right, but in the medium term, what if this works out? In five years, this will be a playoff caliber team. And once we're at that level, we'll go all in on talent. So you can hoist the commissioner's trophy, the first one in franchise history. For the rest of the meeting, Luno lays out the details of his proposal. A five year plan for the Astros to reach the playoffs and eventually win the World Series. His strategy for getting there is daring and unorthodox. It will require radical changes to the organization on both the business side and in the clubhouse. But by the end of the presentation, Crane is left impressed. He doesn't offer Luno the GM job on the spot, but as Luno shakes Crane's hand and heads out of his sparse office, Crane feels invigorated. Jeff Luno just laid out a vision for Astros that's progressive, aggressive, and even a little cutthroat. It's the kind of vision that could transform a losing baseball team into a winning one. Ryan Reynolds here from Mint Mobile. With the price of just about everything going up during inflation, we thought we'd bring our prices down. So to help us, we brought in a reverse auctioneer, which is apparently a thing Mint Mobile Unlimited Premium Wireless. How many get 30. 30. Bid to get 30. Get 20. 20. 20. Better get 20. 20. 15. 15. 15. 15. Just 15 bucks a month.
Evan Drelich
Sold.
Lindsey Graham
Give it a try@mintmobile.com Switch. $45 upfront payment equivalent to $15 per month. New customers on first three month plan only taxes and fees. Extra speed slower above 40 gigabytes of detail.
Evan Drelich
Why get all your holiday decorations delivered through Instacart? Because maybe you only bought two wreaths but have 12 windows. Or maybe your toddler got very eager with the Advent calendar. Or maybe the inflatable snowman didn't make it through the snowstorm. Or maybe the twinkle lights aren't twinkling. Whatever the reason, this season Instacart's here for hosts and their whole holiday haul. Get decorations from the Home Depot, CVS and more through Instacart and enjoy free delivery on your first three orders. Service fees and terms apply.
Lindsey Graham
On December 7, 2011, Astros owner Jim Crane hires Jeff Luno as the team's general manager, ushering in a new era for Houston and a world of new possibilities for Luno's data driven approach to baseball. In one early meeting between Luno and Crane, the new GM bluntly asks his boss, what are my constraints? Crane responds by tearing a blank sheet of paper off his notepad and sliding it over. The message is clear. There are no constraints. The organization is a blank slate, and Luno realizes that this might be his one chance to run a team exactly the way he wants to run it. So Luno quickly gets to work building out his front office within the Astros organization. He brings his analytics expert Sig Meidel over from the Cardinals and gives him the title of director of decision sciences. He also fires veteran members of the Astros organization, often in unceremonious ways. And when the 2012 season begins, Luno reveals his plan for the games themselves. And that plan involves losing a lot. If the Astros are going to rebuild their team, they need to draft good young talent. And the team with the league's worst record gets the overall number one draft pick the next year. So Luno, with Crane's approval, makes sure the Astros take advantage of that system. In the 2012 season, the Astros lose 107 games out of 162. The next year, they lose even more with 111, including their last 15. They become the laughing stock of the league. The fans hate it, and the press dubs them the disastros. And Luno's unconventional methods aren't going over well within the organization, either. Dissent starts to grow, and soon word of that internal strife reaches a local sports writer. Evan Drelich is a newly minted beat reporter at the Houston Chronicle covering the Astros. And almost as soon as he begins work late in the 2013 season, he starts to hear rumblings of turmoil within the team. It starts with an offhand comment from an agent representing one of the Astros players. He says that something is off with the way things are being run, and it goes deeper than just losing games. With his interest piqued, Drelich sets off on a months long quest to find out exactly what's been happening behind the scenes. By the spring of 2014, Drelich has interviewed several former players and even spoken to Luno on the phone. And the more he learns, the more he realizes that something is off. Indeed. But he still hasn't been able to get a current player to give him a quote. But today, he's hoping his luck will change. From his desk in the Houston Chronicles newsroom, Drelich picks up the phone and dials the number of an Astros player who's agreed, reluctantly, to speak with him about problems inside the organization. Hello, this is Evan, right? It is. Yeah. Thanks for agreeing to talk with me about this stuff. Well, I don't want this call to be long. I'm not one to talk smack or anything. No, I understand. And that's not what this call is about. I'm just trying to get a better sense of what's going on with your team, you know, from someone who's living it every day. But before we start, are you comfortable with me recording this? Do you have to? Well, I'm not going to use your name like we agreed, but I want to make sure I have things phrased exactly as you say them and not me going off memory. The player pauses, seeming to mull it over. Then he finally agrees, and Drellet begins recording the call. So tell me more about the energy on the team right now. You faced a lot of upheaval, it sounds like, since Jeff Luno took over. Upheaval? Yeah, that's one way to put it. Look, the bottom line is I don't think anyone's happy. I'm not. And what makes you unhappy right now? It's like they just take the human element out of baseball. They being the front office. Your new gm. Yeah, it's hard to play for a GM who just sees you as a number instead of a person. You don't feel like a person as a member of your team, like you're being dehumanized. I feel like an experiment. Jeff's experimenting with all of us. I mean, what kind of atmosphere is that? Drella can feel the player's frustration through the phone. Is there anything else you'd like to add? Not really. You swear you won't use my name? Oh, you have my word. There are 25 guys on that team. I'll make sure nothing in the article can identify you. Thanks. I just want to make sure the fans know we aren't happy either. You know, we're trying our best man. You gotta let them know that we don't want this On May 23, 2014, Evan Drelich publishes an article under the title Radical Methods Paint Astros as Outcast. The piece lays out the Astros analytics heavy approach and the discontent that it's sown within the organization. Drelich quotes both current and former players who say the Astros have developed a bad reputation as a club that treats its players like disposable puzzle pieces. Drelich also quotes Jeff Luno, whose response to the concerns is to say, we're not running for election here. It's not a popularity contest. Drelich's reporting generates a flurry of negative media attention, but the bad press and griping players do little to deter Luno. With owner Jim Crane's support, he keeps pushing forward with his five year plan to rebuild the Astros into a dream team, one that makes decisions based on hard data, not baseball tradition. Luno also slashes operating costs, especially the team's payroll. At the start of the 2013 season, the Astros entire roster is set to earn just $26 million, the lowest in Major League Baseball. Luno's philosophy is simple. They'll spend more on talent only when they have a real shot at winning the World Series. But strife within the organization continues. Team manager Beau Porter is increasingly at odds with Luno, whose obsession with player stats and analytics makes him more hands on than most GMs. Luno's office often sends suggested lineups down to the clubhouse and recommendations for which relief pitchers match up best against opposing team's hitters. They even tell Porter where to line up his fielders based on where batters tend to hit the ball, all a strategy called defensive shift. But as the losses keep piling up, a frustrated Beau Porter starts ignoring his GM's recommendations. Things reach a boiling point late in the 2014 season when Luno fires Porter along with other members of the coaching staff. Luno realizes he needs people around him who not only buy into his data driven approach, but can execute it properly from the front office down to the field. So he hires a new manager, AJ Hinch, who is more amenable to the changing tides of modern baseball. And in 2015, Hinch's first full season as manager, the team known as the Disastros starts winning. In 2016, they post another winning record. Some of the team's top draft picks have started making an impact and momentum is building even as tensions continue to simmer at Minute Maid Park. Because toward the end of the 2016 season, it becomes clear that despite their winning record, the Astros won't make it to the playoffs. But the team's progress is undeniable, and Luno is searching for more ways to innovate to push the Astros to the next level of success. Around this time, Derek Vigoa, an Astros intern, mentions to Luno that he's figured out a way to integrate more data into player analysis and get an edge on the other teams. Luno has always liked Vegoa. The two men share a similar background business students out of the University of Pennsylvania with a key understanding of baseball statistics. So when Vigoa flags a new use for analytics, Luno invites him to give a presentation. On September 22, 2016, Luno and other members of the club's front office sit down opposite one of the team's projector screens and watch Vegoa bring up a PowerPoint presentation. VOA seems nervous, his voice is halting, and he fumbles to click through the slides. It's not the kind of performance that instills confidence, but when Vigoa starts mentioning something called codebreaker, Luno's ears perk. Up on the screen is an Excel spreadsheet, which Vegoa explains is filled with information that can help the Astros predict pitches. For some time now, Bogoa has been watching televised games and cataloging opposing team sign sequences, as well as the actual pitch that's thrown through this process. He's been building a database that decodes the signs for every team. So if the catcher is putting down two fingers and the pitcher is responding with a curveball more than 80% of the time, you can almost certainly say if you're facing that particular pitcher, catcher duo, two fingers is going to mean a curveball. What Vegoa is describing is not exactly groundbreaking, and Luno knows it. Teams have been stealing each other's signs almost since the invention of baseball. But Luno is hungry for a new competitive edge, and he doubts any other team in the league has built a database of signs as comprehensive as Vegoa's. So Luno leans forward in his chair and begins to ask questions. The application might be rudimentary, but he can the potential. Five years ago, Luno vowed to owner Jim Crane that he would rebuild the Astros organization, and thanks to innovation that at times has been ruthless, they've done it. Cold, hard data has paved the way to a new horizon for the Houston Astros, but one thing still remains just outside their grasp a World Series title. Luno can sense they're close. If they can keep finding small, smart ways to gather more data to stay one step ahead of their competitors, then the biggest victory yet will be squarely in their sights. From wondering this is Episode one of Houston Astros Caught Stealing for American Scandal. In our next episode, the Astros round out their organization with veteran players and coaches who embrace the team's aggressive approach to innovation, innovation and technology, and their philosophy of doing whatever it takes to win. If you're enjoying American Scandal, you can unlock exclusive seasons on Wondery plus, binge new season first and listen completely ad free when you join Wondery plus in the Wondery app, Apple Podcasts or Spotify. And before you go, tell us about yourself by filling out a survey@wondry.com survey. If you'd like to learn more about this story, we recommend the books Winning Fixes Everything by Evan Drelich and Cheated by Andy Martino. This episode contains reenactments and dramatized details. And while in most cases we can't know exactly what was said, all our dramatizations are based on historical research. American Scandal is hosted, edited and executive produced by me, Lindsey Graham for Airship Audio Editing by Christian Paraga Sound design by Gabriel Gould Music by Lindsey Graham this episode is written by AJ Marisha edited by Emma Cortlandt Fact Checking by Alyssa Jung Perry Produced by John Reed Managing Producer Olivia Fonti Senior Producer Andy Herman Development by Stephanie Jens Executive producers are Jenny Lauer Beckman, Marsha Louie and Erin O'Flaherty for wandering for years, American Scandal has taken you deep inside the biggest controversies and shocking events in US History. And now you can listen to exclusive seasons on Wondery Plus. Go beyond the headlines with jaw dropping stories and immersive reporting that unveils the complex truth behind these scandals. In our exclusive season, the Hare Krishna Murders Dive into the twisted world of a rogue sect of Hare Krishnas. When devotees mysteriously disappear, the trail leads to a dark web of deceit, greed and even murder. Or explore the sordid tale of Enron as we reveal the shocking depths of corporate fraud that led to one of the biggest bankruptcies in American history. From political conspiracies to corporate corruption, these in depth investigations will keep you on the edge of your seat. Experience American Scandal like never before with exclusive seasons that you won't find anywhere else. And on Wondery, you can binge entire new seasons before they're publicly available. Start your free trial of Wondery plus and the Wondery app, Apple Podcasts or Spotify to start listening today and uncover the real story behind America's most notorious scandals.
American Scandal: Houston Astros - Caught Stealing | Radical Methods | Episode 1
Host: Lindsay Graham
Release Date: October 15, 2024
In the inaugural episode of American Scandal titled "Houston Astros: Caught Stealing | Radical Methods | 1," host Lindsay Graham delves into the intricate web of the Houston Astros' rise in Major League Baseball (MLB) and the ensuing scandal that questioned the integrity of their success. This episode meticulously traces the Astros' transformation from a struggling franchise to a World Series champion, driven by unorthodox, data-driven strategies under the leadership of General Manager Jeff Luno. As Graham uncovers the layers of innovation, ambition, and ethical ambiguity, listeners gain an in-depth understanding of how the pursuit of victory can sometimes blur moral lines.
[00:00] The episode opens on September 21, 2017, at Minute Maid Park in Houston, Texas, where White Sox pitcher Danny Farquhar experiences unexplained disturbances during a game against the Astros. These anomalies hint at possible sign stealing, setting the stage for the scandal.
Jeff Luno, introduced as the Astros' unconventional General Manager, spearheaded the team's transformation. With a business background rather than traditional baseball experience, Luno embraced a philosophy of innovation over tradition. His approach emphasized data analytics, echoing the principles popularized by Michael Lewis's Moneyball.
Luno (43:15): "Moneyball was a revelation. Sabermetrics marries my strengths in baseball knowledge and analytics."
Background and Early Career
Jeff Luno's passion for baseball was ignited by his mother during their time in Mexico. Armed with degrees in engineering and economics from the University of Pennsylvania and an MBA from Northwestern, Luno sought to merge his analytical prowess with his love for the game.
St. Louis Cardinals Tenure
In 2003, inspired by Moneyball, Luno joined the St. Louis Cardinals as Vice President of Baseball Development. His tenure was marked by friction with traditionalists like pitching coach Dave Duncan, who resisted Luno's data-centric methods.
Dave Duncan (12:47): "He's a corporate suit who thinks he's figured out the sport."
Despite internal conflicts, Luno's strategies contributed to the Cardinals' success, culminating in a World Series title in 2006.
Acquisition of the Astros
In 2011, billionaire Jim Crane purchased the Houston Astros for $680 million, seeing potential where others saw a failing franchise. Crane, with a background in air freight logistics, valued Luno's data-driven approach and appointed him as the Astros' General Manager.
Jim Crane (27:53): "We need someone who can bring a Moneyball approach to our recruitment efforts."
Implementation of Radical Strategies
Under Luno's leadership, the Astros underwent drastic changes:
Luno (33:20): "Letting go of magical thinking and sticking to the data is essential for building a championship team."
Internal Struggles
Luno's aggressive methods led to growing discontent within the Astros organization. Manager Beau Porter clashed with Luno over strategic decisions, feeling that data overshadowed traditional coaching instincts.
Beau Porter (29:10): "They just take the human element out of baseball. I feel like an experiment."
Evan Drelich's Investigation
Evan Drelich, a beat reporter for the Houston Chronicle, began investigating the Astros in 2013 after receiving tips about internal turmoil. Through interviews with players, Drelich uncovered widespread dissatisfaction with the data-driven regime, portraying the Astros as a team more focused on numbers than player welfare.
Anonymous Player (32:15): "You don't feel like a person as a member of your team, like you're being dehumanized."
Drelich's 2014 article, "Radical Methods Paint Astros as Outcast," amplified negative perceptions, but Luno remained steadfast with Crane's backing.
Innovative Yet Controversial Techniques
In 2016, Derek Vigoa, an Astros intern, developed "Codebreaker," an advanced system to decode opposing teams' sign sequences using comprehensive data analysis. While sign stealing itself wasn't new, the sophistication and scale of the Astros' methods pushed ethical boundaries.
Vigoa (30:55): "We've been building a database that decodes the signs for every team."
Ethical Implications
Luno's relentless pursuit of a competitive edge raised questions about fair play. The use of high-tech solutions to anticipate pitch types without on-field observers marked a shift from traditional sign stealing into regulated territory.
Luno (35:12): "We're not running for election here. It's not a popularity contest."
By the episode's end, the Houston Astros stood on the cusp of achieving unprecedented success, but the foundation of their achievements was marred by suspicions of unethical practices. Jeff Luno's vision had transformed the team, but at the cost of internal harmony and later, the team's reputation.
Luno (44:05): "If we keep finding small, smart ways to gather more data, then the biggest victory yet will be in our sights."
The episode sets the stage for future explorations into how these radical methods culminated in one of MLB's biggest scandals, questioning whether the ends truly justified the means.
Jeff Luno:
Beau Porter:
Dave Duncan:
Anonymous Astros Player:
Derek Vigoa:
Innovation vs. Tradition: Jeff Luno's data-centric approach revolutionized the Astros but clashed with established baseball traditions.
Ethical Boundaries: The Astros' sophisticated sign stealing methods blurred the lines between strategic advantage and unethical behavior.
Organizational Impact: Radical changes led to internal strife, affecting team morale and cohesion.
Media and Public Perception: Investigative journalism played a crucial role in uncovering and shaping the narrative around the Astros' practices.
American Scandal promises to continue unraveling the complexities of the Houston Astros' strategies and the repercussions of their relentless pursuit of victory. Future episodes are set to explore how the team integrated veteran players, embraced further technological innovations, and ultimately, how these actions culminated in one of MLB's most infamous scandals.
Note: This episode contains reenactments and dramatized details based on historical research to provide an immersive storytelling experience.