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He was the second Ducks coach to earn the honor, the other being Rich Brooks (two times).Prior to the 2010 season, Kelly suspended Jeremiah Masoli for the season after the quarterback pleaded guilty to second-degree burglary charges, marking the second year in a row that a key player was suspended.In December, following an undefeated 12–0 season and an end-of-season #2 BCS ranking, Oregon was selected to play the #1 Auburn Tigers in the BCS national championship game on January 10, 2011.The Tigers, out of the Southeastern Conference, were coached by Gene Chizik, and had the Heisman Trophy winner at quarterback in Cam Newton.Under Kelly's guidance, Dixon was the Pac-10 Offensive Player of the Year and emerged as a Heisman Trophy candidate.In 2008, the Ducks once again led the Pac-10 in scoring (41.9 ppg) and total offense (484.8 ypg), while breaking the school record marks set the previous season.The Ducks lost, 22–19, on a last-second, 19-yard field goal by Wes Byrum.
From 1995 through 1998, the speedy back raised the profile of UNH football as he rushed for what was then an FCS record 6,193 yards.
With a 37–20 win over the Oregon State Beavers on December 4, 2010, Kelly led the Ducks to a 9–0 finish in conference play, winning their second consecutive outright Pac-10 North title.
With Darron Thomas at quarterback and Doak Walker Award winner La Michael James at running back, the Ducks averaged 49.3 points and 537.5 yards per game in the regular season.
He coached Oregon to three consecutive outright conference championships from 2009–2011 and a conference division title in 2012.
Oregon won its second consecutive BCS bowl game after they defeated #5 Kansas State in the 2013 Fiesta Bowl.
Kelly was hired as offensive coordinator at Oregon in February 2007.