To facilitate the optimization and promote the synergetic progression of the regional sports industry, this investigation aims to elevate the regional economic structure’s advancement and enhance the comprehensive efficacy of the regional economy. Toward this objective, a spatial econometric framework is developed to analyze industrial agglomeration dynamics. Utilizing the principles of industrial agglomeration and spatial economics, we conduct an empirical investigation, merging both qualitative insights and quantitative analytical approaches. Utilizing the Chengdu-Chongqing Economic Circle as a case study, this research quantifies and evaluates the degree of agglomeration within the sports industry and investigates its influence on the process of industrial structural upgrading. The empirical investigation indicates that the agglomeration of the sports industry within the Chengdu-Chongqing Economic Circle is at an incipient phase, distinguished by a pattern of differentiation. The current level of structural upgrading within the sports industry is characterized by a low degree of advancement, with the anticipated benefits of agglomeration economies failing to manifest in terms of facilitating this structural enhancement. Furthermore, a notable siphon effect emanates from the contiguous urban centers, resulting in a demographic pattern characterized by two prominent peaks, with the remainder at a lower level. The configuration of the sports industry across the cities within the Chengdu-Chongqing Economic Circle, as well as the intra-urban structure of the sports industry in each city, demonstrates substantial asymmetry. Thus, it is imperative to augment the efficiency of agglomeration within the sports sector and to mitigate the occurrence of intermediate collapse to facilitate the structural enhancement of the sports industry.