Many sports towns have emerged in China in recent years, and the prerequisite for their healthy development requires a suitable investment strategy. Therefore, this article constructs an optimal decision model in which the sports industry is the primary industry, promoting the development of other industries. The results show that subsidies from higher levels of government can incentivize sports towns to invest in sports capital; there is a complementary relationship between the sports capital and other capital investments and sports product marketing efforts; as the subsidy rate increases, profits of the towns and the social benefits created show an inverted U-shape. Choosing the correct subsidy rate is essential for both the towns and their parent government. The research framework and results provide a valuable tool for sports towns and their parent governments to make decisions and adapt their strategies to changing circumstances timely.

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