Abstract: The Law of the People's Republic of China on Physical Culture and Sports does not involve private entities in sports governance system. Under the background of the emphasis on negotiated governance and public-private partnerships governance, it is necessary to clarify the identity of private entities in the amendment to Law of the People's Republic of China on Physical Culture and Sports and encourage private entities to participate in cooperative governance in the fields of conduct norm, administrative decision-making, administrative law enforcement, resource integration and dispute resolution. The study demonstrates the legitimacy and rationality of private entity's participation in sports governance from the perspective of legal texts and rule of law practice, and holds that private entity can play a role in suitable ways in rule making, administrative law enforcement and relief procedure. Combined with relevant contents of cooperative governance, the study tries to structure the amendment in the aspects of legislative confirmation, clarifying entity qualification, promoting government leadership, and strengthening responsibility. It is indicated that the issues need to be clarified in private entity's participation in sports governance.