Complex sentence: The teams are selected on the basis of nationality, not according to the location of the players' universities, and many of the European players attend American universities as sports scholarships have never been a feature of the university system in Europe.
Split into simpler sentences: The teams are selected on the basis of nationality, not according to the location of the players' universities. Many of the European players attend American universities as sports scholarships have never been a feature of the university system in Europe.