Obviously this won’t work for all sports, but things like football, track, soccer, it would allow for de-gendered team, even allowing athletes with the skills but not the genetically-endowed physical attributes to have a place to play.
Note: I know very little about sports and being on a sports team, so please point out anything that doesn’t make sense.
Ding ding ding, we have a winner.
(edit to be completely clear: being queer myself, this is not something I am celebrating, just pointing out that you have the correct answer)