It is actually how it works in terms of official punishments(in the US at least):

Amdt5.2.1.2.4 Imposition of Multiple Punishments for the Same Offense

Fifth Amendment:

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

The Double Jeopardy Clause protects against imposition of multiple punishment for the same offense.1 The application of the principle leads, however, to a number of complexities. In a simple case, it was held that where a court inadvertently imposed both a fine and imprisonment for a crime for which the law authorized one or the other but not both, it could not, after the fine had been paid and the defendant had entered his short term of confinement, recall the defendant and change its judgment by sentencing him to imprisonment only.2 But the Court has held that the imposition of a sentence does not from the moment of imposition have the finality that a judgment of acquittal has. Thus, it has long been recognized that in the same term of court and before the defendant has begun serving the sentence the court may recall him and increase his sentence.

Obviously not being picked for an olympic team isnt an official punishment, but the principle of not punishing someone for the same crime after they complete their given sentence is true.

https://www.law.cornell.edu/wex/double_jeopardy#:~:text=The Double Jeopardy Clause in,for substantially the same crime.

From the US, but the philosophical reasoning still applies.

You misunderstand the point. The Netherlands did not stop him from competing for them, presumably because he’s served his time for the crime by their standards.

That’s your problem with the Netherland’s Olympic committee then, not the other athletes - the whole point of the post.