Since first hosting the tournament in 1977, the venue has provided the backdrop to a golden age for snooker but Hearn says it is no longer fit for purpose.
With the hosting contract expiring in two years, Matchroom, which has largely controlled snooker since 2010, is heavily involved in negotiations and Hearn says ideally the World Snooker Tour wants to stay.
But the 76-year-old, whose son Eddie is Matchroom chairman, has called on Sheffield city council to expand the venue from its 980-capacity or face losing the event.
"It's black and white: we love the Crucible, we love Sheffield, but the Crucible and Sheffield have got to love us," Hearn, former chairman of the World Professional Billiards and Snooker Association (WPBSA) told BBC 5 Live.
"We want to stay but the financials have to be taken into consideration. The facilities where the Crucible is are no longer fit for purpose, that's the key issue."
Hearn's Matchroom Sport also runs darts, which draws crowds of several thousands to large arenas and subsequently can offer huge prize money and he believes snooker must go the same way.
"The Crucible's been a big part of my life and a big part of snooker's life," Hearn said. "But it has to move with the times and someone, whether it's the government or Sheffield, have to come up with a way of showing us that they're going to treat us with respect and give us the type of facilities we require.
"It's as simple as that. It's not complicated."
The Crucible's cosy intimacy is loved by fans and TV audiences alike, but the capacity cannot match demand.
A record six Chinese players have reached the last 16 of this year's ongoing championship and China, along with Saudi Arabia, have both been linked with hosting the tournament.
"Maybe we should take this worldwide. Maybe it should be one year in Beijing, one year in Saudi and one year in Sheffield. We have to move with the times," Hearn said.
"I'm concerned with increasing the prize money as we have done with darts. Snooker needs to be more commercially viable.
"The contract period ends in 2027 and we need a decision soon. I'm too old to do brinkmanship. I need 3,000 people per session, otherwise I'm letting down a lot of people and we lose their support. We want to stay in Sheffield, so show me the way.
"If not, I can justify a rotation that takes the World Snooker Championship on the road and makes it what it is, a world championship not just a championship for Sheffield."
Last week the World Snooker Tour, Sheffield City Council and Sheffield Theatres issued a statement saying that due to the 'sensitive and commercial nature of these ongoing discussions' no announcement would be made during this year's event.