Pete Rose Press Conference (June 26, 1989)

Amid reports that he had bet on baseball, Rose was informally questioned in February 1989 by Commissioner of Baseball Peter Ueberroth and NL President Bart Giamatti. Rose (with his lawyer present) had stated that he had bet on football, basketball and horse racing, but he vehemently denied the allegations of betting on baseball.[29] By this time, MLB owners had elected Giamatti to succeed Ueberroth, and the outgoing Commissioner decided to leave the matter to be dealt with by his successor. In the meantime, Sports Illustrated gave the public their first detailed report of the allegations that Rose had placed bets on baseball games on March 21, 1989,[30] in the cover story of the issue dated April 3, 1989.[31] Giamatti assumed office as the seventh Commissioner of Baseball on April 1. Three days later, lawyer John M. Dowd was retained to investigate the charges against Rose.

Investigation
Dowd interviewed many of Rose's associates, including alleged bookies and bet runners. He delivered a summary of his findings to the Commissioner in May. In it, Dowd documented Rose's alleged gambling activities in 1985 and 1986 and compiled a day-by-day account of Rose's alleged betting on baseball games in 1987. The Dowd Report documented alleged bets on 52 Reds games in 1987, citing Rose wagered a minimum of $10,000 a day; whereas others allegedly involved in the activities claim that number was actually $2,000 a day.

Response
Rose continued to deny all of the accusations against him and refused to appear at a hearing with Giamatti on the matter. He filed a lawsuit in Hamilton County Court of Common Pleas, the Ohio state trial court covering Cincinnati, alleging that the Commissioner had prejudged the case and could not provide a fair hearing. The Court of Common Pleas issued a temporary restraining order to delay the hearing, but Giamatti sought to remove the case to the federal United States District Court for the Southern District of Ohio. The Southern District of Ohio granted Giamatti's removal petition. The parties thereafter entered settlement negotiations, as the federal court, whose judges were lifetime appointees and whose jurisdiction included large areas where the Reds were less popular, was seen to be a less favorable forum for Rose than a state court covering only Cincinnati and its immediate environs and whose judges faced election every six years.[citation needed]

Aftermath
On August 24, 1989, Rose voluntarily accepted a permanent place on baseball's ineligible list.[32] Rose accepted that there was a factual reason for the ban. In return, Major League Baseball agreed to make no formal finding with regard to the gambling allegations. According to baseball's rules, Rose could apply for reinstatement in one year but Bart Giamatti said, "There is absolutely no deal for reinstatement. That is exactly what we did not agree to in terms of a fixed number of years."[33] Rose, with a 412–373 record, was replaced as Reds manager by Tommy Helms.[34]

Giamatti died of a heart attack on September 1, 1989, eight days after announcing Rose's suspension.[35]

Betting for or against
The Dowd Report says, "no evidence was discovered that Rose bet against the Reds," but investigator Dowd stated in a December 2002 interview that he believed Rose probably bet against the Reds while managing them.[36] Those critical of Rose's behavior, including Ohio's own Hall of Fame baseball reporter, Hal McCoy, have observed that "the major problem with Rose betting on baseball, particularly the Reds, is that as manager he could control games, make decisions that could enhance his chances of winning his bets, thus jeopardizing the integrity of the game."[37] The Major League Baseball rule that Rose violated prohibits any bet on a game the bettor is involved in, making no distinction between betting for or against one's team. The rule is: "Rule 21 Misconduct, (d) Betting on Ball Games, Any player, umpire, or club, or league official, or employee, who shall bet any sum whatsoever upon any baseball game in connection with which the bettor has a duty to perform shall be declared permanently ineligible."[38]