How much more clarification can you get than Kelly?
If you were watching the press conference, Kelly asked someone else, I suspect the head of player development, and echoed that person's response. At other schools the head coach gets to make the determination on who gets to come back. At ND a faculty committee decides who is academically eligible for a 5th year scholarship. The coach say who he would offer (or who he wants back) but if the faculty committee say, "No!" The player is finished. Also something to keep in mind at other schools you do your 5th year finishing up your undergraduate degree. ND expects you to get your undergraduate degree in 4 years. ND's 5th years are graduate school slots, hence the faculty committee determining whether a student athlete is grad school material. Another obstacle the head coach at ND has to deal with that the Alabama's and Oklahoma's don't have to deal with.