I'm less familiar with the S Type 5 speed autos but my 6 speed x350 would drop a gear if you pressed the sport button - ie drive along at a steady speed and press the S button and you should feel the car change down a gear and the revs rise.
Testing these things will give you a clue if the issue is just a light out or a more fundamental issue with the switch, wiring or the box itself.
Hope that helps
1996 XJS Celebration Conv. (shown on the JEC stand at NEC Nov 2015)
2001 XKR Convertible
1989 XJ-S V12 Coupe. 2006 XJ TDVi Sovereign. 1995 XJ6 3.2. 2013 XF 2.2d. 2009 X Type 2.0d Sovereign estate
Well worth investing in an iCarsoft930i dedicated Jaguar/Landrover unit for about £90 or if you have an Android phone, download the paid version of Torque. About a £4 download. Both very useful for fault finding with trouble codes listed in a library. Otherwise take the car direct to a local modern transmission rebuild company for help and advice.
The function is no doubt part of the Power Train Control Module facets for which there are several fuses but there ares no specific detail of the Sport function being sub-listed or within a function group.
Once again to cut out the guess work the only real place to start to work from would be a scan.
Best advice I can offer on this I`m afraid.
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