This definitely involves clever thinking, which sports encourage.
You need to judge your opponent’s strategy and modify yours accordingly. You need to devise strategies to win, you need to decide whether to take an offensive stand or a defensive one. You need to devise ways to score goals, runs or earn points, as the case may be. Playing sports involves directed thinking. Winning a game gives you a sense of accomplishment, which boosts your confidence further.
Sports foster collective thinking and harness your planning and delegation skills too. Sports teach you to interact with people, communicate with them and collaborate as a team. Playing sports is very beneficial for the development of social skills.