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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.
On March 31, 2009, Oregon announced head coach Mike Bellotti would be promoted to athletic director; consequently, Kelly would be promoted as head coach.
Kelly became the first Pac-10 coach to win an outright conference championship in his first season, sending the Ducks to the Rose Bowl for the first time since 1995.
He coached Oregon to three consecutive outright conference championships from 2009–2011 and a conference division title in 2012.
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.The next year, he was outside linebackers and strong safeties coach for the varsity team.