Along with other school propaganda like "MIT doesn't do legacy", "Ivy League doesn't offer sports scholarships" is essentially false. The implication is that the ivy leagues don't give a "free pass" to students for athletic reasons, when they do.

To their credit, they aren't willing to sacrifice all pretense of "student-athletes" compared to some other schools. But there are definitely plenty of students that only get admission due to their athletic ability.

But they offer admission based on ability to play sports, so they can mandate meaningful diversity on their sports teams that reflects the greater student body.