This paper studies the dynamic interaction between sports industry and urbanization process. Based on grey system theory and agglomeration economy theory, this paper studies the correlation and coupling between sports industry and urbanization in Shanghai and establishes the correlation and evolution relationship between them. Sports industry has played a key role in urban infrastructure construction, spatial layout optimization and industrial structure transformation. Research shows that e-sports industry is closely related to urbanization, and it is the product of technological innovation, industrial integration and capital flow. Industrial development and urbanization show a “U” curve, especially in 2014-2017. Coupling theory extends from the field of physics to the field of sociology, which provides a framework for evaluating the degree of interaction between multiple systems. By investigating the coupling between urbanization and sports industry, this study aims to reveal the intricate relationship between urbanization and sports industry.