The veteran right-hander will earn a base salary of $1.5 million if he makes it onto the big-league roster, per Paul Hoynes of the Plain Dealer, and could earn up to $4 million total with incentives.
Matsuzaka's disappointing six-year career in Boston came to an end in October. Dice-K spent much of his tenure in Boston hurt, and picked up just 50 wins in a Red Sox uniform. That's $1 million per win, not to mention the other $50 million just to talk to him before they signed him.
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Matsuzaka had his best season in 2008 when he won 18 games and lost just three with an earned run average under three. Things went quickly downhill after that, and he eventually had to undergo Tommy John surgery in 2011.
In all, Dice-K put up a 4.52 ERA over 116 starts for the Sox, posting an earned-run average under 4.00 just once in his six seasons at Fenway.
He will be reunited with his former manager Terry Francona in Cleveland, who managed the Red Sox until last year. Matsuzaka will have a chance to make the team out of spring training.