Based on Porter’s Diamond Model theory，this research constructs an index system of factors affecting the development of the sports industry in Shanghai，and uses the gray correlation analysis method to analyze the data of each index from 2014 to 2019 and the added value of Shanghai sports industry，and the ranking of correlation degree is obtained：added value of the cultural industry，the number of employees in the sports industry，per capita disposable income of urban residents，tourism industry added value，per capita GDP，accommodation and catering business turnover，operating income of sports companies，per capita sports area，wholesale and retail industry added value，proportion of people who regularly participate in physical exercise，actual amount of sports lottery charity fund，per capita consumption of sports. Then this research analyzes the correlation between each index and the added value of the sports industry and the specific correlation path. Finally，it summarizes the inspirations from this above analysis to the development of the sports industry in Shanghai.