Amid reports that he had bet on baseball, Rose was questioned in February
1989 by outgoing commissioner
Peter Ueberroth and his replacement,
Bart Giamatti. Rose denied the allegations and Ueberroth dropped the investigation. However, after Giamatti became Commissioner, three days later, lawyer
John Dowd was retained to investigate these charges against Rose. A
Sports Illustrated cover story published on
March 21, 1989 gave the public their first detailed report of the allegations that Rose had placed bets on baseball games.
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, a document which became known as the
Dowd Report. 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 his alleged bets on 52 Reds games in
1987, where Rose wagered a minimum of $10,000 a day. Others involved in the allegations claim that number was actually $2,000 a day.
According to the Dowd Report itself, "no evidence was discovered that Rose bet
against the Reds." This is in contrast to the case of
"Shoeless" Joe Jackson and his teammates in the
Black Sox Scandal, who were accused of intentionally losing the
1919 World Series.
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 alleging that the Commissioner had prejudged the case and could not provide a fair hearing. A Cincinnati judge issued a temporary restraining order to delay the hearing, but Giamatti fought to have the case moved to Federal Court. The Commissioner prevailed in that effort, after which he and Rose entered settlement negotiations.
On
August 24, 1989, Rose voluntarily accepted a permanent place on baseball’s ineligible list. 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 reapply for reinstatement. Rose, with a 412-373 record, was replaced as Reds manager by
Tommy Helms. Rose began therapy with a psychiatrist for treatment of a gambling addiction.
Rose's ban has prevented the Reds from formally retiring his #14 jersey. However, aside from his son
Pete Jr.'s brief stint with the team in
1997, the Reds have not issued that number since Rose's ban. Even though the number has not been retired, it is highly unlikely that any Red will ever wear that number again. His uniform number 14 was retired by the Cincinnati Cyclones of the East Coast Hockey League.