FWIW, I was talking to a couple alumni who have some contacts in the administration 5 weeks ago at a wedding...and they are/were under the impression that an extension wasn't imminent. Not that one wouldn't occur or it wouldn't happen, just that it wasn't imminent (as of 5 weeks ago).
The Eagles flirtation, according to them and their contacts, caused a bit of friction between BK and the administration (or BOT, depending on how you look at it). Some of the good will built up over Kelly's 3 years at the helm was kind of lessened (I won't say destroyed) by the Eagles dalliance.
Again, these are 2 guys who know people that work in the administration, but I wouldn't proclaim it as Gospel. And keep in mind, a fight (so to speak) between 2 people doesn't necessarily mean a break up. I got in a big one with my boss a a month or two ago...and then we reconciled...and now both of us are happier and more committed to our job and each other than we were before. We just needed to clear the air, get some stuff off our chests, reexamine our commitment to our work and each other, and reexamine expectations and compensation. Same thing could happen with BK and ND (if, in fact, it even needs to).
I still don't think there's a need for anybody to panic over the situation though. I still think things get worked out.
My 2 cents.