Can I create and sell t-shirts with sport figure images without violating PA and federal intellectual property laws

You need to deal with at least two issues before selling any such tee shirts: (1) acquiring the rights to reproduce the photographs and (2) acquiring the right from the athlete to encroach upon his or her "right of publicity."

As to the first, you need to need to determine who owns the copyright in the photograph. The general rule is that whoever took the photograph owns the copyright in that photograph. However, photographers employed by (or on contract with) magazines such as Sports Illustrated are most often obligated to assign (i.e., convey or sell) the copyright in their photographs to the magazine (or newspaper or photography company) that paid them to take it. Many times the photograph will be labeled with a copyright notice that states who claims copyright in the photograph. You need to contact that person or entity and request a license to reproduce it.

As to the second, everyone (not just famous people) normally has the exclusive right to exploit their own identity for commercial gain. This right comes from state law and its scope varies depending on whichever state law applies. In short, sports figures own the exclusive right to exploit their name and likeness and many make a substantial amount of money by taking advantage of that right (product endorsements, etc.). You would need to contact the agent that handles the athletes' business dealings and seek a license to use those persons' likeness to sell the tee shirt. A directory of sports agents can be found at http://www.sports-agent-directory.com/ and a blog about sports agents at http://www.sportsagentblog.com/