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Someone always has to be 'beaten' either physically, pschocologically or emotionally.
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That would be the definition of unhealthy competition. Competition can be a very useful learning medium for an individual in the process of their spiritual evolution. Once you have reached a certain level in your personal journey in this reality then competition no longer is useful to you. If the apposing sides in the competition are competing in order to improve themselves and not to build their egos would be healthy competition. Unhealthy competition is where one or more of the teams / individuals in the contest are only in it to build their egos and could care less about improving themselves.
It is only when you invest part of your ego into a competition that you risk damage to your psyche. In that case, the competition is not the problem. The problem is the materialistic paradigm of the participant(s).