Entrepreneurship is an integral part of sport but less is known about how different types of entrepreneurship facilitate innovation. The aim of this paper is to develop a theory of sports-based entrepreneurship that incorporates different sub-categories of entrepreneurship such as social, technological and international. Specifically, the article connects the entrepreneurship and sport management literatures by proposing a theory of sport-based entrepreneurship, which can be used as a theoretical framework for future research. In addition, the paper provides a unique insight for sports practitioners and public policy planners wanting to focus on entrepreneurial ways to manage sport-based organizations.