Can the theme handle multiple teams?

Technically the theme only supports one team at a time, so that is the only “supported” configuration. However, there are multiple ways you can use the theme for more than one team.

Roster and Schedule Types

If all of your team technically have the same name and colors (You’re all named the Oakland Eagles”, but have Varsity, Junior Varsity, etc) then all of the teams could probably share the same site. You can use Roster Types, Schedule Types, and News Types to keep their items separate.

So for example, instead Roster Types of Players and Coaches, you could go into Team Rosters > Roster Types and replace them with Varsity, Junior Varsity, etc. Do the same for Schedule Types and News Types.

Your main menu won’t change automatically, you’ll probably need to go into the Appearance > Menus area and add those Roster, Schedule, and News Types manually.

WordPress Multisite

The other, more complex, way to create a multi-team site is to use WordPress multisite. It would only require one installation of WordPress, but each team would get their own “site”. The theme would be activated for each team’s site. If you just set the colors/settings the same throughout the whole site, then no visitor to your website would realize that they are actually browsing multiple different “sites”.

Again, this is one way to consider making a multi-team website, but it may require more intimate knowledge of WordPress in order to accomplish this.

If you want to learn how to enable multisite, read up about it on the Codex.