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Unless you have Adaptive Drive and Variable Damper control, selecting sport will not have any effect on the chassis, other than to quicken the steering response - it will not alter any suspension settings.
As 'Highland Pete' says, the difference is subtle in that it will drop an extra gear by using the shift lever, as opposed to the switch.
I suggest you try the difference on a given stretch of road with similar throttle input.
Granted, my car is a 640i, but the power train is the same as Pete's 535i and if I want maximum pick-up in the 40-60 mph range, I always use the shift lever.
Having said all that, I see you have a 525 and the difference may not be so noticeable - just try it both ways and see if you find any difference. It also depends on whether or not you have the sport auto box, which, I think, has slightly different shift points.
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