as Michael said the problem isn't so much the schema typing as the fact
that you are passing a string when the function expects an element.
this fails
 as="schema-element(res:team)"  
but so would
    as="element()"

Your function expects a team element so just give it one instead of a
string, there will (presumably) necessarily be a team element child of
the current node in a valid document so

  <xsl:copy-of select="myfn:MakeTableRow(team,current-group())"/>

should work and be able to cope with any typing of the first parameter.

David

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