The sports industry, as an important pillar of the national economy, faces the problems of low governance efficiency and insufficient integration with modern information technology in the process of governance. In response to this, this paper, based on the requirements of governance system and governance capacity modernization put forward by the 19th CPC Central Committee’s Fourth Plenary Session, explores the current situation, advantages, and challenges of blockchain technology empowering digital governance in the sports industry. In response to the problems of asymmetric information, frequent sports property disputes, and low information transmission efficiency in the development process of the sports industry, this paper introduces the concept and architecture of blockchain technology and analyzes the advantages it brings to the sports industry in terms of decentralization, property protection, security mechanisms, and trust environment construction. Secondly, in response to the current development status of laws and regulations not being perfect, lack of supervision mechanisms, and low technical coverage rate in the application of blockchain technology in the sports industry, this paper puts forward suggestions such as improving top-level design, innovating supervision technologies, improving governance efficiency, and achieving independent control of core technologies to solve the real problems of blockchain application in the sports industry. To promote the in-depth application of blockchain technology in the sports industry and provide theoretical basis and practical guidance for digital governance in the sports industry, thereby helping the sports industry achieve high-quality development.