There is a conflict in the current PE curriculum between its goal of developing core competencies and the way it is taught, the latter being somewhat superficial. A teaching system called “Learn-Practice-Compete-Evaluate” is proposed as a solution to the structural dilemma described. In this paper, core competencies are examined at the theoretical level, and an operational framework for the LPCE teaching system is established by examining the four dimensions of “Learn,” “Practice,” “Compete,” and “Evaluate.” Internal mechanisms of closed-loop connections across all four dimensions and spiral progression among them are explained. Problem-based learning encourages deep understanding; step-by-step and progressively developing skill proficiencies; real competitions increase an individual’s enthusiasm for sport; and multi-stakeholder evaluation will produce diagnostic feedback. The framework developed will support curriculum reform efforts focused on developing physical literacy.