As one of the most lucrative and fast-growing industries globally, Sport has held significant potential for investment attraction. However, the development of investment in the sports sector in Iran has faced multiple challenges. On the other hand, the country also has possessed capacity and potential opportunities. This study aimed to identify and analyze the key factors influencing the challenges and opportunities for investment in the country's sports sector. The present research method was grounded theory. Library studies and semi-structured and in-depth interviews were used to collect the necessary data for identifying relevant components. The statistical population in this study included sports investors and entrepreneurs, sports industry managers and experts, members of national sports teams, economic and sports analysts, policymakers and decision-makers in the sports sector, and sports researchers and scholars. Sampling was conducted using purposive sampling and the snowball method (15 individuals). Lincoln and Guba's (1985) criteria were used to assess the quality and credibility of qualitative results. The findings indicated that factors related to investment in the country's sports sector included sports-related factors (4 indices), political-legal factors (5 indices), economic factors (4 indices), cultural and social factors (3 indices), executive management factors (3 indices), and investment-related incentives (2 indices), which were categorized into challenges and opportunities. Therefore, for the development of investment in this area, comprehensive and targeted measures were needed to address challenges and capitalize on identified opportunities