This article highlights the key elements of the concept of self-management in sport, established within the Yugoslav federation following the adoption of the 1974 Federal Constitution. It analyzes the historical context in which this system emerged, its essential legal and social components, as well as the functioning of sport, and sports organizations using the specific case of one of the Yugoslav republics—Montenegro. In addition to providing a broader theoretical framework, the article also addresses the concrete institutional forms through which self-management policy in sport was implemented particularly through the model of the so-called Self-Managing Communities of Interest in physical culture. Using the example of Montenegro, the article explains how new institutional structures served to integrate and coordinate the work of sports organizations, plan investments, and define new societal roles for sport and physical culture within socialist Montenegro. Drawing on relevant literature and primary archival sources, the article illustrates how the concept of self-management in sport functioned in practice in one of the Yugoslav republics and identifies the most significant elements of decentralization and workers’ management in the domain of sport and physical culture.