Abstract The current study was aimed to evaluate practices and challenges of the youth and the sport offices’ in the sport revenue collection and utilization for the development of sport. To realize the stated objective, the study was applied the descriptive survey research design. The head of sport office, sport accountant, sport experts, sport committees and athletes were taken as participants of the study by applying comprehensive and simple random sampling techniques respectively. Besides, Sport financial recording, ledger document, and sport revenue voucher also the used data sources in this study. Questionnaire, interview, and document analysis were the employed data gathering tools. Accordingly, the collected data was analyzed by using percentage, frequency, mean, ranked mean, and one sample t-test. Besides, words and narration in general also used to analyze the qualitative data. According to the analyzed data, the youth and the sport offices have played partially their roles of sport revenue collection than utilization for the sport development purpose activities. The main reasons for this ineffective revenue utilization are the annual sport budget was not auditing regularly; regular inventory was not conducted on sport resources, lack of work integration observed between the sport offices and finance experts, and lack of timely financial flow for sport offices observed from the regional state and zone departments. Therefore, Regular auditing should be conducted upon the sport revenue by the responsible bodies, the sport offices and the finance experts need to work collaboratively in line with the collection and the utilization of the sport revenue, the regional state and the zone sport departments need to make timely financial flow towards the woreda sport offices, regular sport material innovatory should be administered by the responsible bodies, and training and awareness creation should be conducted for the sport community members in line with the appropriate utilization of the sport revenue . Key Words: sport development, revenue collection utilization