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The Colts waived Kelly on Wednesday, Mike Chappell of Fox 59 News Indianapolis reports.
Kelly's suspension was lifted Monday, so the Colts cut him since they signed Brian Hoyer to a three-year deal in early September. If Kelly clears waivers, he has a good chance to land on the Colts' practice squad. The 25-year-old has never thrown a pass in a regular-season game.
