Ok so in this case, flipping player1 will increase draw calls by one (as player2 won't be batched with player1). While there are ways around this, is it really critical in this case?
Workarounds -
1. Manually flip using sprite.scale, hierarchically. What needs to happen here is you start with the base object, sprite.scale *= (-1,1,1), and for each child, the sprite.scale *= (-1,1,1) and also transform.localPosition *= (-1, 1,1). This should be the easiest to do in your case.
2. Use the dynamic sprite batcher (yeah I know, I've not released it to public yet, still some issues to resolve, but works nicely)