Team OVR = Average Base OVR (rounded up) + Average Rank (rounded up). And you need to be slightly over the whole number to get +1.
So, in practice, to get 120, you need 10x114 players with at least rank 4 (red) and one 115 player with rank 5 (gold). More 120s allow you to have 118s. More gold ranks allow you to have more ranks below the red.
Release of the badges is where things got a bit complicated. You get max 3 active badges. If any of the badges are at level 3, you get +1 Team OVR; if you have all 3 at level 3, then you get +3 OVR.
So your lineup is a pure unbadged max OVR. The other player has some active Level 3 badges. The current max OVR is 123.
Not really gonna calculate this for you, but if you really want to go to likes of fifamobileguide portal and use their calculator, it also gives you an overview of the OVRs too.