Kelly, the nephew of Hall of Fame quarterback Jim Kelly, was in a three-way competition for the starting job this spring but seemed to lose ground after the spring game this past Saturday.
"He has had a pattern of behavior that is not consistent with the values of our program," Swinney said. "I hope he will mature and grow from this and become the man and player I know he can be. I wish him nothing but the best in the future academically and athletically."
Kelly did not play well in the first half of the spring game Saturday -- throwing two interceptions -- but made matters worse after getting into a verbal altercation with coaches at halftime over a decision to punt on fourth-and-short. Kelly was benched for the rest of the game. Afterward, Swinney told reporters in Clemson, "You're not going to have guys crossing a line with the coaches just because they're frustrated with whatever. He got frustrated and reacted the way your leader can't react. It's just that simple."
Kelly was one of the top dual-threat quarterbacks in the nation out of high school in 2012. He redshirted that season, then tore his ACL in the spring game last year. He ended up playing in five games as the No. 3 quarterback in 2013.
But with Tajh Boyd gone, Clemson opened up the competition between veteran backup Cole Stoudt, Kelly and early enrollee freshman Deshaun Watson. It was Stoudt and Kelly who shared the majority of the reps during the spring game, after Watson injured his collarbone during a scrimmage last week.
Now, it appears Stoudt is the favorite to open the season against Georgia. Watson will be healthy in time for fall practice, leaving the Tigers with just two realistic options to play quarterback.