This paper explores innovative strategies for enhancing the utilization, financial sustainability, and community engagement of sports venues in China. As the industry faces challenges related to underutilization and economic viability, the study emphasizes the importance of multifunctional transformation and community-based operations. By reconfiguring sports venues to host a variety of events beyond traditional sports, operators can significantly increase utilization rates and revenue streams. The integration of digital and smart management technologies is identified as crucial for optimizing operational efficiency and enhancing the user experience. Additionally, the paper highlights the need for diversified revenue models, including retail services, corporate sponsorships, and digital content monetization, combined with sustainable development practices such as energy efficiency and waste reduction. These strategies not only secure the long-term financial health of sports venues but also align with broader environmental and social goals. The study concludes that sports venues adopting these innovative approaches will be better positioned to thrive in a competitive and evolving market landscape.