In conversation, this seems like a good thing to say during an uncomfortable silence. It's basically making fun of the fact that everyone is uncomfortable and no one really knows what to say to keep things going. It'll probably make everybody chuckle a little and loosen up.

Here's an example featuring You and Generic Persons 1-4:
Generic Person 3: ...
Generic Person 1: ...
Generic Person 4: ...
      (uncomfortable silence)
You: ... ... So, how about that local sports team? (then smile)
Generic Persons 2 & 4: Heh. Funny.
Generic Person 3: Ha.
Generic Person 1: ... Which team would that be? I don't keep up on sports much.
You: I'm kidding. There's not really a sports team.
Generic Person 1: I used to play on a sports team.
You: No, what I mean is I'm not referring to a particular team or sport or anything. It's a joke. Get it?
Generic Person 1: ...No...
Generic Persons 2-4: Generic Person 1, you're such an idiot.
Generic Person 1: (whimper) ... (runs away crying to self)
You: ...
Generic Person 3: ...
Generic Person 4: ...
Generic Person 2: So, how about that local sports team?

For variations on the same, see "how about them lakers?" and "So how 'bout them yankees?".