The importance of the new business systems that work on developing the concept of institutional support for the new projects has emerged. Within this context, business incubators are considered one of the most effective and successful systems in implementing development programs and supporting creativity and innovation. Therefore, business incubators have become on the list of development priorities and the formation of new projects. The purpose of the study was to identify the effect of applying business incubators on enhancing the innovative performance of investment and privatization projects in Saudi sports clubs, to achieve the objective of the study, the descriptive approach (survey study method) was used. Some officials of the Ministry of Sports, chairmen and members of sports club councils, executive directors, activity managers, financial managers, and members of various committees participated in the study. The study population categories were used to select the study sample intentionally. Two questionnaires were used to obtain data from (430) participants in the study. The results showed that there is an effect of applying business incubators on enhancing the innovative performance of investment and privatization projects in Saudi sports clubs. Business incubators can be applied to support the innovative performance of investment and privatization projects in sports clubs. However, the study also highlighted challenges and barriers faced by business incubators in the Saudi sports sector, such as a lack of awareness, insufficient logistical support, limited resources, and a shortage of skilled individuals. The absence of regulations governing incubator operations further hampers their progress. The study also provides insight into the implications of the application of business incubators to enhance innovative performance and future directions.