For years, some people on other teams had suspected the Astros of stealing signs, but there was no public reporting on the subject until November 2019, when reporters Ken Rosenthal and Evan Drellich at The Athletic published an article detailing the team's activities. Mike Fiers, a pitcher who played for the Astros in 2017, told The Athletic that the organization used a video camera in the center field seats to film the opposing catcher's signals to the pitcher regarding the next pitch. Astros players or team staffers watching the live camera feed behind the dugout used various audio cues, such as banging on a trash can, to signal to the batter what type of pitch was coming next. MLB investigated the allegations and confirmed in January 2020 that the Astros illegally used a camera system to steal signs during the 2017 regular season and postseason, during which they won the World Series, as well as in part of the 2018 season, during which they did not repeat, losing in the ALCS to the Boston Red Sox, who eventually did go on to win the World Series. MLB found no evidence of illicit sign stealing in the 2019 season, in which the Astros advanced to the World Series, but lost in seven games to the Washington Nationals.
The sanctions against the Astros were the most severe that MLB has ever issued against a member club, and are among the most severe sanctions for in-game misconduct in baseball history. MLB suspended Astros general manager Jeff Luhnow and field manager A. J. Hinch for the 2020 season for failing to prevent the rule violations; the Astros fired both men on the day their punishment was announced. MLB levied the maximum $5 million fine on the Astros and stripped them of their first- and second-round picks in the 2020 and 2021 drafts. No players were punished because they had been given immunity by MLB in exchange for their cooperation, and their 2017 title was not revoked. MLB's investigation also determined that Boston Red Sox manager Alex Cora helped mastermind the Astros' sign-stealing while serving as Hinch's bench coach in 2017. The Red Sox and Cora mutually parted ways the following day and MLB suspended him through the 2020 postseason, although the Red Sox rehired Cora after his suspension ended. Carlos Beltrán was the only Astros player from 2017 who was specifically named in the report; he had been hired to manage the New York Mets in November 2019 but parted ways with the team after the results of MLB's investigation were announced.
A Wall Street Journal article published a few weeks after the MLB report revealed new details about the sign-stealing operation, including that it originated during the 2016 season.
After the scandal broke, players on the 2017 Astros apologized to varying degrees. The team's actions were heavily criticized by players on other MLB teams. The scandal dominated the 2019–2020 offseason and the start of 2020 spring training. The scandal also led to lawsuits against the Astros and MLB.
Sign stealing is not inherently against baseball rules and has long been considered part of the game, as it is considered an observational loophole. In 2017, The New York Times wrote that sign stealing was "something of an art form in baseball" which "is tolerated, even admired". Many players and coaches are considered masters at stealing signs.
However, Major League Baseball (MLB) has long frowned upon the use of technology to steal signs. In 1961, the National League (NL) banned the use of a "mechanical device" to steal signs. While MLB did not, at the time, specifically ban electronic equipment, it issued a memorandum in 2001 stating that teams cannot use electronic equipment to communicate with each other during games, especially for the purpose of stealing signs. In September 2017, after the Boston Red Sox were fined for using a smartwatch to try to steal signs, Commissioner of Baseball Rob Manfred issued a memo to all 30 clubs warning that future incidents of electronic sign stealing "will be subject to more serious sanctions, including the possible loss of draft picks".
In 2014, as part of the expansion of replay review in MLB, all 30 teams were permitted to install video replay rooms in their stadiums with live camera feeds, and the dugout was permitted to communicate with staffers in the room. As MLB realized that teams were potentially using the video replay room for other purposes, including sign stealing, MLB placed league officials in the replay rooms for the first time beginning in the 2018 playoffs.
Prior to the 2019 season, MLB reached an agreement with the MLB Players Association to institute new rules restricting the use of live camera feeds by placing a league official in all 30 replay rooms, and allowing only replay officials to watch in real time while others could only watch with an eight-second delay. Tom Verducci of Sports Illustrated said that the ban would include "all non-broadcast outfield cameras from foul pole to foul pole as well as tightening restrictions on in-house video".
The Astros finished in first place in the American League (AL) West division for the 2017 season with a win–loss record of 101–61. They defeated the Red Sox, three games to one, in the 2017 AL Division Series, including two wins at home at Minute Maid Park and one win away at Fenway Park. They defeated the New York Yankees in the 2017 AL Championship Series in seven games, winning all four home games at Minute Maid Park while losing all three road games at Yankee Stadium. In the World Series, the Astros defeated the Los Angeles Dodgers in seven games, going 2–2 at Dodger Stadium and 2–1 at Minute Maid Park. It was their first World Series championship in franchise history and the city's first championship since 1995. The Astros finished in first place in the AL West again in 2018 with a 103–59 record but lost the AL Championship Series to the Red Sox. Houston returned to the World Series in 2019 and in 2021, losing to the Washington Nationals in seven games and the Atlanta Braves in six games, respectively.
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