The Louisville Grays, who were charter members of the National League, were also participants in the N.L.'s first great scandal. In their first season the Grays fielded a run-of-the-mill club that managed to finish in fifth place. Their best player was pitcher Jim Devim who posted a 30-35 record and hit .315, which was tops on the club.

In the following season of 1877 a much improved Louisville club was in first place in mid-August when they suddenly collapsed, losing seven suspicious games to rivals Boston and Hartford. Boston eventually won the pennant, and the Grays finished second. It was later discovered that Devlm, along with three other Louisville players, George Hall, Al Nichols and Bill Craver, had conspired with gamblers to throw enough games to make it possible for Boston to win the pennant.

William Hulbert, who had just taken over as N.L. president banned the four players from baseball for life. The Grays, who were not able to find adequate replacements for the four players, dropped out of the league before the start of the next season.