The development of physical culture and sports organizations in each region of our country is a rather important, strategic issue in the framework of socio-economic development. In this regard, the research topic presents the main aspects of effective functioning of sectoral organizations. Approaches to management processes, systematization of existing and prospective components contributing to the sustainable development of not only organizations, but also the industry as a whole are considered. The authors have built and proposed a model of effective functioning of a sports and recreation complex on the basis of a higher educational institution, and briefly analyzed the processes of its implementation. The study shows that the creation of all necessary conditions for the placement of sports and recreational facilities that orient citizens to a healthy lifestyle, including physical culture and sports, will form a high demand from citizens, as well as from professionally engaged athletes, which will contribute to the development of the industry as a whole. The article shows that effective management of the industry touches upon a complex of processes of interaction of theoretical aspects and practical skills, which are conditioned by economic, administrative, organizational, social components of the general management system of physical culture and recreation organizations, as well as authorities.