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Steroid era, further expansion and near contraction

Routinely in the late 1990s and early 2000s, baseball players hit 40 or 50 home runs in a season, a feat that was considered rare even in the 1980s. It later became apparent that at least some of this power surge was a result of players using steroids and other performance-enhancing drugs.

In 1993, the National League added the Florida Marlins in Miami and the Colorado Rockies in Denver. In 1998, the Brewers switched leagues by joining the National League, and two new teams were added: the National League's Arizona Diamondbacks in Phoenix and the American League's Tampa Bay Devil Rays in Tampa Bay.

After the 2001 season, the team owners voted in favor of contraction. Several MLB teams had been considered for elimination in early talks about contraction, but the Montreal Expos and the Minnesota Twins were the two teams that came closest to folding under the plan. Plans for MLB contraction were halted when the Twins landlord was awarded a court injunction that required the team to play its 2002 home games at their stadium. MLB owners agreed to hold off on reducing the league's size until at least 2006.

The Montreal Expos became the first franchise in over three decades to move when they became the Washington Nationals in 2005. This move left Canada with just one team, but it also returned baseball to Washington after a 33-year absence. This franchise shift, like many previous ones, involved baseball's return to a city that had been previously abandoned. Not counting the short-lived Federal League, Montreal is the only city to host an MLB franchise since 1901 that, as of December 2023, does not have a team.