Good governance in sports organizations, as the primary foundation for fostering innovation, plays a pivotal role in improving organizational performance and effectiveness. The present study aimed to design a good governance model with an emphasis on enhancing innovation in sports organizations. This research adopted a qualitative, basic research design using the Grounded Theory approach based on Glaser’s methodology. The research population consisted of faculty members in sport management, senior and middle managers of sports organizations, members of the executive boards of sports federations, sports policymakers, and experts with specialized experience in sport management and governance. Participants were selected through purposive sampling, and data were collected through 20 semi-structured interviews until theoretical saturation was achieved. During the data analysis process, all 20 interviews were transcribed and subjected to open coding using the constant comparative method, resulting in the extraction of 123 initial codes. After refinement, the conceptual codes were organized through axial coding and classified into major categories. The findings indicated that good governance in sport promotes innovation through mechanisms such as transparency and accountability, flexible organizational structures, supportive policymaking, and stakeholder participation. Furthermore, human factors, including human resource management and an innovation-oriented culture, as well as technological factors such as data-driven management, play significant roles in strengthening organizational innovation. In contrast, structural challenges were identified as the primary barriers to innovation. Finally, the proposed model demonstrates that the interaction between good governance, human capacities, institutional mechanisms, and emerging technologies leads to organizational innovation and improved performance in sports organizations.