Interesting. I feel it looks fine with dress shirts. May just be a matter of taste.
That said, I've worn sports watches as an everyday watch for over ten years, so my opinion may be skewed.
I'm in a business casual corporate culture where suits and ties are rare, but have done the suit/tie plenty when on outside consulting assignments and never felt it was out of place.
I can imagine that it may not fly in a more business formal environment. Even so, with an athletic (lean) build making a sporty looking band congruous, I'd think fairly few environments wouldn't be suitable.
But as I said at the start of the post, probably a matter of taste. (though if I worked somewhere that someone took me aside to tell me the black/gray band wasn't appropriate attire I'd be seeking sending out resumes that evening... life's too short for that sort of nitpicking environment)