In order to improve the quality of football development, this paper researched on the relationship analysis of football business strategies and football innovation development. Through the past ten years’ reform and development, Chinese football has obtained valuable experience and formed primarily a developing theory possessing the Chinese characteristics. However, it is significant as to how to conduct a further analysis and research to solve the problems confronted by Chinese football during its course of reform and development by exercising the theory of sustainable development. Due to the developing model of the plan economy carried out for long, the sports functional departments are on the point of transition in the course of the national economic system transiting to the market economy. The five forces analysis also indicates the internal competitive factor at the micro level within the industry including horizontal and vertical competition. The horizontal competition consists of three forces, which are threat of new entry, intensity of competitor rivalry and threat of new substitute product.