A team category is a container allowing you to group teams together. For example; you’re running a regional league community, you may want to group your teams together by club e.g. Westminster Tennis Club would be the Team Category and you could assign the individual teams, i.e. Westminster Men’s 1, Westminster Mixed 1, Westminster Mixed 2, etc. to that category.
You can assign a Primary Contact to a team category. This person has admin rights over all the teams in that category.
You can change the name of team categories in Community Settings > Display Options.