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The decision came a little more than a week after the Colts lost their first playoff game for the second straight season, and it ends a coaching career in which Dungy reached one NFC championship game and two AFC championship games.
In addition, Dungy finished his six-year tenure in Tampa and his seven-year stint in Indy as the career leader in victories for both franchises, finishing with an overall record of 148-79.
But the critics always questioned Dungy's postseason numbers. In Tampa, his adopted hometown, Dungy went 2-4 in the playoffs and failed to reach the Super Bowl. He was 7-6 in Indy, failing to advance past the first game four times.
"You always think you can win a few more," Dungy said. "But I won't look back and think that we could have won one more if I had put more time in."
While the city of Tampa reveres Dungy for turning a moribund franchise into a perennial playoff team, Indy's bond with Dungy was just as strong.
The city applauded Dungy's achievement when he finally won the Super Bowl and rallied around Dungy's family when he endured his greatest tragedy -- his son's suicide in 2005.
"His biggest legacy will be all the people around the country who he's inspired to be better and to deal with some of life's tragedies in a manner that gives people a lot of strength," Edwards said. "What he went through with his son and how he handled it, was something that says a lot about Tony, his faith and what he stands for."
What's next for Dungy is unclear. He has been involved for years in prison ministries, with Family First and as part of All-Pro Dads.
"Where my heart is, is really with our young men right now," Dungy said. "We have so many guys that didn't grow up like me, didn't have their dad there and that's something I'm very, very interested in."
He also believes the Colts will continue to win under Caldwell, who takes over after spending the past eight seasons on Dungy's staff. Caldwell spent seven of those seasons, one in Tampa, as the quarterbacks coach before being elevated to associate head coach last January.
Caldwell's only other head coaching experience came at Wake Forest, where he went 26-63 from 1993-2000.
But it will take more than wins and losses to fill Dungy's shoes.
"Tony Dungy taught us all how to handle triumph and tragedy with dignity and grace," NFL commissioner Roger Goodell said. "Although we will miss him, Tony is a great man and his impact will be part of the NFL forever."
[Associated Press;
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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