Kelly made a brief appearance Wednesday morning in Arapahoe County Court where his next court date was set for Nov. 8. Kelly was in the Broncos' complex about 25 minutes before his court appearance -- the two buildings are adjacent in south suburban Denver -- and stayed roughly 10 minutes before he left for the courthouse. He was not formally charged.
Kelly, who was a seventh-round pick by the Broncos in the 2017 draft, had no comment before or after his court appearance.
In a statement, Broncos president of football operations/general manager John Elway said: "This was a decision that we made as an organization. After reviewing all the information and in talking with Vance (Joseph) and Joe (Ellis), we agreed that releasing Chad was the right thing to do. Even though Chad's no longer part of our team, we've offered to help him however we can and are supportive of him in every possible way."
Kelly, 24, was arrested early Tuesday on first-degree criminal trespass after a couple reported he came into their house uninvited, according to a "determination of probable cause'' affidavit filed in Arapahoe County Court.
According to the affidavit, the man and woman told police that a stranger came into their Englewood, Colorado, home after 1 a.m. The intruder sat down on the couch next to the woman, who was holding the couple's young child, and was "mumbling incoherently," according to the records.
The man yelled at the intruder to get out and hit him in the back with a vacuum cleaner tube. Police surveillance video showed a man wearing dark pants, a white long-sleeved shirt with a brown vest and a red scarf around his neck entering the front door.
Kelly had been at a team Halloween party hosted by linebacker Von Miller. Several players contacted in the past two days told ESPN and NFL Network that they were angry that Kelly was "acting up'' at that party and at one point was asked to leave the gathering just before he was arrested.
Police said they found Kelly sitting inside a black SUV parked about a block from the couple's home after the man chased Kelly out of the home. Kelly matched the couple's description, and the man later identified him as the person who came into the house, according to court documents.
After his arrest, Kelly posted a $2,500 bond and was released later Tuesday.
Several people with the team have said in the last two days that Elway was greatly angered by Kelly's arrest because the Broncos had selected Kelly in the 2017 draft despite Kelly's off-the-field troubles during and just after he completed his collegiate career.
Kelly's uncle, Hall of Famer Jim Kelly, called Elway in the days leading up to the draft to vouch for Chad Kelly's willingness to steer clear of any problems. Kelly had been praised by the team's coaches as well as his teammates for his work this past offseason, including a bevy of charity appearances, but after Tuesday's arrest the team felt the need to make a move.
Kelly had outplayed former first-round pick Paxton Lynch in training camp and in the team's preseason games to win the backup quarterback job. Lynch was waived when the Broncos trimmed the roster to 53 players before the start of the regular season.
Earlier this offseason Kelly had spoken of his desire to get his career on track after his injuries and his draft-weekend plunge.
"I'm just trying to get better every rep,'' Kelly said then. " ... I just want to be consistent and repeat everything that you're doing -- being out of the game for a year and a half, there hasn't been any consistency in what I've been doing. I've got to get back to doing that, feeling like myself and going out there and competing at a high level.''
Kelly had missed his rookie season while recovering from knee and wrist injuries. The only snap Kelly has played this season was a kneel-down just before halftime of the Broncos' loss to the Los Angeles Rams. Keenum was being evaluated for a concussion during the play and then returned to play in the second half.
Kelly was dismissed from Clemson's football team in 2014 after arguing with coaches during the spring game. He also was arrested after a bar fight in 2014 and eventually pleaded guilty to a misdemeanor charge of disorderly conduct.
In October 2016, he was involved in a brawl at his brother's high school football game in New York. He ran onto the field after his brother, Casey Kelly, was tackled, and there was video that showed Chad Kelly being restrained by several coaches.