During the winter of 1900, Ban Johnson, president of the Western Baseball League, decided the country was large enough for two major leagues, especially after the National League contraction of 1899 removed four teams including the Cleveland Spiders . Johnson decided to make his league a major league, changing the name from the Western League to the American League.

Feeling strong that a team in Cleveland would help boost the league's reputation as a major league, he moved the Grand Rapids franchise to the shores of Lake Erie. However, their first season would not be a success as the Blues finished in seventh place with a 55-82 record.