"J.P. proved to be a very valuable pitcher us," general manager Ned Colletti said in a statement. "Not only did he help us achieve success, but his demeanor and competitiveness were real positives in the clubhouse."
The contract is worth a guaranteed $11.25 million, and could be worth as much as $17.25 million over three years, not counting any incentives.
Howell will receive a $3 million signing bonus, then make $4 million in each of 2014 and 2015, per Joel Sherman of the New York Daily News.
Howell also has a mutual option for 2016 worth $6.25 million with a $250,000 buyout, that converts to a player option if Howell pitches in 65 games in 2015 or 120 games combined in 2014-2015, and if he doesn't end 2015 on the disabled list, again per Sherman. If Howell doesn't pitch in 120 games in the next two years, and the Dodgers exercise the 2016 option, Howell can decline but wouldn't receive the buyout.
Howell in 2013 made $2.85 million in base salary and earned $700,000 of a possible $1.75 million in incentives.
Howell and his wife Heather tweeted on Christmas about returning to the Dodgers.
Merry Christmas!!! Hope you all had a wonderful day. We are forward to being back in LA! 🎄💙🌟💙🎄 pic.twitter.com/at67AGtHDA— JP&Heather Howell (@TheHowells56) December 26, 2013
The deal for Howell was one of four contracts finalized on Christmas Eve. The Dodgers now have $218.675 million committed to 21 players in 2014, and have 40 players on the 40-man roster. There will be more contract details to follow later this morning.