Ours has sports day. They even list two dates in the calendar in case the first gets rained off.
From my first experience last year when dd was in preschool, it's competitive which i like. Medal and certificate for 1st/2nd3rd place and overall shield for best performing team.
Teams are made up of a fairly even mix of r-y6 pupils and assigned a colour. It is asked that your dc wears their team colour on sports day. there are only about 60 pupils though.
Preschoolers have their own races and are thoroughly cheered by the entire school.
We have the teachers and parents races which the dc love.
The best part is whilst it's competitive, first placed to last in gets cheered as enthusiastically as each other. The school places a huge ethos on working together and as they are mixed year group classes, it really works well. There's one lad with cp who gets given a head start in races so he's practically at the finish before the others start. I've been told in the last when he was lower down the school and therefore smaller, a couple of bigger boys would catch up with him then run him to the line to cross as a winner.
I have an intense dislike of non-competitive games. I'm not a sportsperson and never gave been. But life doesn't just hand you things on a plate or cushion every hard knock. I honestly believe sports in a controlled environment give children the opportunity to learn pride, achievement, humility, team work. The whole idea that 'everyone's a winner' doesn't give a child the chance to manage a knock back and doesn't prepare them well for a life where they may not always get their own way.