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The Ministry of Economy, Trade and Industry have forwarded a proposal to apply the concept of intraindustry flow of funds in order to develop the sports industry and strengthen the financial base of sports businesses from the top level to the grass-roots level. With regard to industrial policy, the flow of funds is a concept among multiple industries, and intra-industry flow of funds within the same industry is not assumed. However, in the sports industry, we can observe the intra-industry flow of funds in certain cases, especially in foreign countries. This paper examines the cases of intra-industry flow of funds in the sports industry, mainly in England and Germany, to understand their structural characteristics, to identify the necessary requirements for realization of intra-industry flow of funds in the Japanese sports industry, and to discuss the feasibility of such flows. In order to realize intra-industry flow of funds, it is necessary to have funding providers, recipients, a legal and taxation system for fund transfers, an entity to manage the flow of funds, and a rational reason why flow of funds is also essential for the fund providers. The most promising candidate fund provider is the spectators’ sports business. On the other hand, for the recipients, the cases seen in England and Germany suggest that regional sports clubs with non-profit entities are the most likely candidates. In order to enable the flow of funds or, in other words, the transfer of profits from providers to recipients, it is essential to have a legal system and a preferential taxation system to support it. In addition, an element of a public interest needs to be embedded in the design of a system that supports such a flow of funds or it would likely be unacceptable by the providers. The intra-industry flow of funds is a concept that conflicts with a free market economy. On the other hand, it is widely recognized that sports are a public interest that needs to be indemnified. Naturally it is expected that this public interest would be embedded in certain types of sports businesses. While there are good prospects for designing a system to realize the intra-industry flow of funds in the sports industry in Japan, it is of utmost importance to establish a common understanding of public interest in sports businesses among stakeholders involved in the sports industry. [ABSTRACT FROM AUTHOR]