Leitao started his second year with the opening of the new John Paul Jones arena and an upset win over Arizona. Led by Sean Singletary and J. R. Reynolds, Virginia finished with an 11–5 conference record and a share of the ACC regular season title with North Carolina. Memorable wins came over Duke, with Sean Singletary's fadeaway floater and stare on ESPN, while memorable losses came in Puerto Rico and last place Wake Forest. This was Leitao's best year with the Cavaliers. On March 6, 2007, Leitao was voted as the 2007 ACC Coach of the Year by the Associated Press in conjunction with the Atlantic Coast Sports Media Association. Two days later, the National Association of Basketball Coaches (NABC) named Dave Leitao the 2007 District 5 Coach of the Year. In the NCAA Tournament, the #4 seeded Cavaliers defeated the University at Albany in the first round in an 84–57 rout. In the second round, Sean Singletary's last-second shot bounced off the rim and the Cavaliers were defeated by the University of Tennessee in a 77–74 loss. The team completed the 2006-2007 season with a record of 21–11 (11–5 ACC).