The simple past tense is used to tell a story that happened in the past. The past continuous is used to provide context for a story that happened in the past.
So, your first sentence is great. It tells the story of when you played for the team, and how you prepared. That's the point of the first sentence.
The second sentence, however, only provides context, and tells no story. When there's a context clause, we need a story clause. The meaning is clear, but after reading it, I'm waiting to hear what the point of the sentence is, like:
When I was playing for the team, I was training hard and we were eating veggies, so I was always in great shape. The point of this sentence is now to say that you were always in great shape then, and to explain why.
For a clearer example in dialogue:
Annie: I finished the book you bought me on the bus just now.
Bob: Oh great! What did you think?
Here, Bob understands that Annie is telling him that she read the book he gave her, and continues the conversation from there.
Annie: I was finishing the book you bought me on the bus just now.
Bob: Oh yeah, what happened?
Annie: This drunk guy started yelling at me about the book!
Here, Bob understands that Annie is just giving the context for what happened on the way home, and is waiting for the story she wants to tell.
Now, this is what happens if Bob misunderstands, and thinks Annie's first sentence with past continuous is the story:
Annie: I was finishing the book you bought me on the bus just now.
Bob: Oh great! What did you think?
Annie: It's good, but that's not the point. This drunk guy started yelling at me about the book!
Here, Annie has to correct Bob's misunderstanding of the situation.