"The department of investigations will have critically important responsibilities in protecting the integrity of our sport," commissioner Bud Selig said.
Dan Mullin, a former New York City Police Officer who had been in baseball's senior director of security operations, was appointed vice president and head of the unit. George Hanna, a former FBI employee currently in baseball's security department, was appointed senior director of investigations.
MLB said the unit "will have broad authority to conduct investigations." The limits of the unit were not immediately clear. Will it become a spy unit that places moles in clubhouses? Will it secretly tail players away from ballparks?
Bob DuPuy, baseball's chief operating officer, said the department "will be given the freedom to do what is appropriate ... in the context of acceptable and customary investigative and business practices."
Mullin was not available for comment, baseball spokesman Rich Levin said.
It was unclear whether the activities the unit could participate in would have to be negotiated with the players' association.
"We learned about this late last night. We had no role of any kind or sort in it," union head Donald Fehr said. "After we digest it, to the extent we have questions and things we want to raise, I'm sure we'll be doing that."
Under labor law, terms and conditions of employment are subject to collective bargaining.
"We are free to investigate employee misconduct without bargaining," said Rob Manfred, executive vice president of labor relations in the commissioner's office.
