Initially, Holley played in the reserves where he was a regular goal-scorer, although he made a scoring debut in the First Division on 27 December 1904 away to Sheffield Wednesday.
In his first few seasons at Roker Park he was over-shadowed as a goal-scorer by Arthur Bridgett, but in 1907–08 he was the club's top-scorer with 24 league goals.
Holley won his first international cap against Wales on 15 March 1909, playing on the right alongside his Sunderland teammate, Arthur Bridgett.
His close friend, Leigh Roose, was in goal for Wales but could not stop Holley scoring after 15 minutes as England ran out 2–0 victors.
"He scored a magnificent hat-trick, running nearly half the length of the field each time and coolly dribbling the ball round goalkeeper Jock Ewart before placing it in the net.
"[citation needed] Sunderland narrowly missed out on the Double, losing the FA Cup final 1–0 to Aston Villa.