I'm not sure how you get that impression.
American universities do this, but (with a couple of famous exceptions, like the traditional boat race between Oxford and Cambridge) British universities don't care about sport.
The social hierarchy was just separate, and had no bearing on anything academic. I didn't care for a second what the rugby team were doing (generally drinking themselves into a stupor), and they didn't care about me. That's just a reflection on British culture in general.