Background and Aims: To further enrich the learning life of students and cultivate talents with all-round development in ethics, intellect, physicality, social skills, and aesthetics, the State issued the Opinions on Further Reducing the Burden of Homework on Students in Compulsory Education and the Burden of Out-of-School Training. The "double reduction" directly restricts the size of subject-based out-of-school training organizations and reduces the number of hours they conduct extracurricular training, which can greatly impact out-of-school training organizations. Based on the development of extracurricular training institutions in Xi'an, Shaanxi Province, this study examines the strength of the correlation between the policy context and the development of local sports training institutions. The "Double Reduction" policy refers to the state's efforts to reduce the extracurricular burden on students and the economic pressure on parents while promoting the all-round development of students. As the sports environment improves and schools pay more attention to physical education, the development of basketball training institutions in the policy context is also worth studying. Understanding the development of youth basketball training institutions in Xi'an, Shaanxi under the double reduction policy can provide reference and guidance for cultivating excellent basketball reserves in Xi'an and promote improving China's basketball level. Youth basketball training institutions are an important base for cultivating excellent basketball reserve talents, and understanding their development in the context of the double-reduced policy can help assess the effect of the existing training model on talent cultivation and put forward suggestions for improvement. Methodology: This paper focuses on the youth basketball training institutions in Xi'an, Shaanxi Province, and adopts the questionnaire survey method and interview method to conduct research. Using the 4M theory and POLC theory, 270 samples, including 20 managers, 50 coaches, and 100 students and parents each, were selected and studied by questionnaire survey method. Summarize the development status and give specific development measures. Finally, the results of the study were given to nine experts for evaluation to obtain a high-quality, scientific management guide for the sustainable development of basketball training organizations in Xi'an, Shaanxi Province. Results: The measures were screened and finally six specific management guidelines were identified after expert evaluation and recommendations, which were accepted by the experts after validation, and the feasibility of the specific measures was verified. Conclusion: The study finds that the release of policies has a significant impact on the development of organizations. The release of policies may trigger changes in the competitive landscape of the basketball training organization industry, and the changes in the market prompt basketball training organizations to improve their strengths to adapt to the new rules of competition. However, it can also provide guidance and direction for the development direction and focus of basketball training organizations, prompting them to transform and upgrade to grasp new development opportunities. Stricter regulatory standards and requirements have prompted basketball training institutions to strengthen compliance management and improve service quality and standardization.