"...We had a discussion on the night after the game when the reports came out, and I was sort of -- I fully understood the background of those reports..."
Not sure what to make of it, but out of context it sure doesn't sound like Kelly wasn't looking around after the USC game this year. It sounds more like he was and JS needed some understanding and comprehension of BK's intentions.
"I fully understood the background of those reports" is not a resound, "it never happened" type statement.