$fp = fopen("file.txt", "r");
$items = array();
$i = 0;
while ($line = fgets($fp, 4096)) { // get all text on each line
$items[$i] = explode("|", $line); // make an array out of text separated with |
$i++; // increment array counter
}
Now you will have an array called $items with as many rows as you have lines in your file, and each row will itself be an array of the items found on each line. So using your example:
$items[0] = array("Team 1", "23", "34");
$items[1] = array("Team 2", "34", "23");
$items[2] = array("Team 3", "12", "43");