Skip to main content

Introduction

In February 2023, The Sports Council for Wales (known by its trade name Sports Wales) commissioned Sheffield Hallam University (SHU), in partnership with Loughborough University, to carry out a Social Return on Investment (SROI) study of sport in Wales. The research builds on a previous SROI study for sport in Wales (2016/17). It is centred in the policy context in Wales, taking into account the Vision for Sport in Wales and the Future Generations Act.

Sport Wales is the national organisation responsible for developing and promoting sport and physical activity in Wales at both community and elite levels.  It is financed by annual funding from the Welsh Government and from income generated from its own activities.  It is the main adviser on sporting matters to the Welsh Government and is responsible for distributing Welsh Government and National Lottery funding to sport in Wales. 

The SROI study aims to measure and value the social impacts of sport in Wales. Its purpose is to enable Sport Wales to evidence the contribution of sport to stakeholders and support cross-government conversations about investment in the sector.  As such, the study only includes social outcomes that can be robustly evidenced, to ensure a high level of rigour.

Background and context

Sport Wales is one of 44 public sector organisations which are subject to the Welsh Government’s Well-being of Future Generations (Wales) Act 2015, which is legislation requiring public bodies to put sustainable thinking and partnership working at the heart of their working, to improve the social, economic, environmental and cultural well-being of Wales.  The Act requires public bodies, including Sport Wales, to work towards seven well-being goals, which are: 

  • A prosperous Wales
  • A resilient Wales
  • A healthier Wales
  • A more equal Wales
  • A Wales of cohesive communities
  • A Wales of vibrant culture and thriving Welsh language
  • A globally responsible Wales

The Vision for Wales spells out how sport can help contribute to the well-being goals and transform Wales into ‘an Active Nation where everyone can have a lifetime enjoyment of sport’.  Moreover, the Sport Wales Strategy, Enabling Sport in Wales to Thrive, outlines how the Vision will be achieved. In both documents, the potential benefits of being active are outlined, with the latter drawing on evidence from the first SROI for sport in Wales.  This study will provide updated evidence to support these policy documents. In particular, the SROI will provide evidence to help demonstrate the value created through sport in relation to 'A healthier Wales', 'A Wales of cohesive communities', and ‘A Wales of vibrant culture and thriving Welsh Language'.

While this research builds on the previous SROI of sport in Wales from 2016/17, and similarly uses an SROI framework, it includes different social outcomes, thresholds of participation, and in some cases, different valuation techniques.  As such, the results from this study should not be directly compared with the previous SROI.

Defining sport

For the purposes of the study, the research team were guided by the definition of sport provided in the Council of Europe’s Sports Charter (1992), which defines sport in its broadest sense to include:

“...all forms of physical activity which, through casual or organised participation, aim at expressing or improving physical fitness and mental well-being, forming social relationships or obtaining results in competition at all levels.”

The study includes all formal and informal sports, and physical activities considered to be active recreation, such as fitness activities, dance and recreational walking. However, it excludes household activities not rooted in or related to formal sport and exercise, such as gardening. For the purposes of this study, we also exclude active travel. 

Report structure

The report is structured as follows: chapter 2 outlines the research approach; chapter 3 summarises the stakeholder interviews and evidence, audit of previous SROI studies and the Impact Map; chapter 4 presents the outcome valuations; chapter 5 summarises the SROI and the sensitivity analysis; and chapter 6 presents the conclusions and recommendations for further research.

Research approach

This study uses a Social Return on Investment (SROI) framework to measure the social impact of sport and active recreation in Wales in 2021/22. 

SROI is a framework for understanding and measuring the non-market economic, social and environmental value created by an activity, organisation or intervention.  It is increasingly being used across the sport sector, especially by public agencies and charities, to measure social value and to advocate for investment. 

SROI measures the value of outcomes generated through sports participation and volunteering and the net costs, or inputs, of providing opportunities for engagement. The SROI analysis expresses the monetary value of outcomes in relation to the inputs. For example, for every £1 of investment in Wales, a value of £y is generated.  The study explicitly excludes watching sports events as this is outside the remit of Sport Wales.

The SROI is evaluative, which means that it measures activity which has already taken place. Data for the analysis was collected through a mix of methods, including stakeholder interviews, analysis of previous population-level SROI studies, and secondary data collection. The figure below outlines the six stages of the SROI analysis.

The study focused on the value of sport for adults 16 years and over.  

Figure 2.1.  Stages of an SROI

A cycle chart representing the 6 stages of an SROI analysis. Chart reads: 1. Establish scope and identify stakeholders 2. Map inputs, outputs and outcomes 3. Measure and value outcomes 4. Establish Impact 5. Calculate SROI 6. Report and embed

Stakeholders

After establishing the scope of the study, the first stage of an SROI is to identify stakeholders.  Social Value International define stakeholders as ‘people or organisations that experience change as a result of your activity, or those who affect the activity under analysis. They can be individuals, groups of individuals and organisations’.  Table 3.1 identifies the major groups of stakeholders for sport in Wales. 

Table 3.1: Stakeholders for sport in Wales
Public sectorPrivate sectorThird sector Households

Sport Wales

Welsh Government

Local Authorities

UK Sport

Public Health Wales

Schools

Higher Education Institutions

Commercial fitness and exercise providers 

Employers with sport, exercise and physical activity facilities

Voluntary sports clubs

Sport and Leisure Trusts

National Governing Bodies

Charities delivering sports activities

Sport for development organisations

Sports participants

Sports volunteers

Stakeholders were involved in the SROI in several ways. They helped to define the scope of the study and identify the inputs and the outcomes to be measured. The information they provided helped to develop the Impact Map, which is presented in the next chapter.  They also contributed to verifying the research process and findings.

Stakeholder interviews

In consultation with Sport Wales, the research team identified a list of key stakeholders to consult with. The following organisations were interviewed by the research team: 

  1. Sport Wales
  2. Public Health Wales 
  3. Football Association of Wales
  4. Welsh Government (Sport Policy department)
  5. StreetGames
  6. The Outdoor Partnership 

Each interview asked questions around the perceptions of the impacts of participating and volunteering in sport and physical activity, including both positive changes and negative or unintended changes. Interviewees were also asked to rank the importance of these outcomes for the SROI. 

Physical and mental health

The major benefit identified in the interviews was positive health outcomes of sport and physical activity participation, including both the prevention of ill health and the treatment of ill health, in particular treating, managing or delaying the symptoms of particular health conditions. Specific health conditions mentioned included diabetes, obesity and chronic disease, and mental health conditions included stress, anxiety and depression. Also mentioned were delaying the symptoms of ageing and maintenance of good health in older people. Both physical and mental health were generally regarded as being well-documented and evidenced outcomes of sport and physical activity. 

Social cohesion

Secondly, the social benefits of sport and physical activity were identified as an important outcome. This included through both participation and volunteering enabling people to meet others, feel a sense of belonging with a group, and develop feelings of community. The interviews highlighted that these feelings of belonging and cohesion could be developed through being part of a team, as well as through participating with friends and / or family, strengthening family ties if participating together. Developing feelings of community as part of a local club or team also developed feelings of both trust and pride in the local community and impacted on feelings of responsibility to the local area – having potential for reducing anti-social behaviour such as reducing littering and graffiti in the local area. 

Wellbeing 

The interviews also highlighted subjective wellbeing outcomes as being an important benefit of sport and physical activity. This was linked with the social outcomes, as developing feelings of belonging and community contributed to positive feelings about oneself, feeling happier, developing confidence, improved social skills, self-esteem, self-efficacy, self-belief, feeling worthwhile, and feeling cared about (for example by sports leaders, coaches, teammates). 

Other outcomes

Further outcomes were also highlighted including improved skills such as leadership and communication skills, having potential for increased educational attainment and productivity at work or in volunteering roles, and as a result potentially having positive financial impacts for workplaces. Also, a reduction in crime and anti-social behaviour through getting young people off the streets and giving them a purpose. These outcomes however were described as anecdotal and may therefore be difficult to attribute solely to sport and physical activity. 

Negative and unintended outcomes

There was one interviewee who described no negative outcomes as resulting from sport and physical activity participation. Others, however, described some potential negative outcomes. The most frequently mentioned of these was the potential for some negative mental health or wellbeing impacts on individuals, due to pressures to perform or succeed causing anxiety and stress, and both the fear of failure and the reality of failure impacting negatively upon confidence and self-efficacy. Encountering sexism and racism in sport were also mentioned as negative factors which could impact upon feelings of wellbeing. Wellbeing could also be affected by the pressures on both individuals and their families for finances to afford the cost of participation in sport, as well as the pressure on time. Anti-social behaviour was also described as a potential negative outcome, and this was mentioned in particular in relation to football hooliganism. Finally, the risk of injury was highlighted. 

Other evidence relating to social outcomes of sport in Wales

During interviews, the stakeholders were asked to provide examples of any relevant evidence showing the value of sport and physical activity specific to Wales. The material provided included a qualitative evaluation of the ‘Step into sport’ programme (Brier et al., 2023), a sport based intervention for ‘at risk’ young people, which found that there were positive impacts for participants, who benefitted psychologically (for example, more positive: self-concept; self-esteem, anger management; mental health and wellbeing); physically (such as learning new physical skills; improved sleep and nutrition behaviours; increased physical fitness); and socially (for example, new relationships and social connections; developing role models); and finally participants were more aspirational about future prospects in terms of both continuation of sport and increasing motivation for work-placed opportunities.  Similarly, an evaluation of a rugby-based intervention (Brier and Mellick et al., 2023) found the same psychological, physical, social and aspirational outcomes for young people and quantitative analysis further revealed that across three psychometric measures (WEMWBS, PHQ-9, GAD-7), participants experienced an increase in mental wellbeing, decrease in depressive symptoms and a decrease in anxiety symptoms. 

Perceptions of the benefits of football participation were highlighted by research undertaken on behalf of the Football Association of Wales (The Nielson Company, 2022) which asked parents what the benefits of football were for their child. The findings showed that parents believed that football improved general health and wellbeing (71%), provided social skills (64%), and improved mental skills (self-control, concentration, discipline, decision making and leadership). It should be noted that this was based solely on the perceptions of 138 parents of children aged between 6 and 17 who play football. 

The Outdoor Partnership Strategy (2021-2031) presents a vision of ‘enhancing people’s lives through outdoor activity’. This includes enhancing people’s physical and mental health and wellbeing, and economic return (including employment) through outdoor activity such as grassroots participation in activities such as walking, cycling and adventure sports. As an organisation, The Outdoor Partnership has key areas of work that all lead to their overall vision. Research to evaluate these schemes of work includes an estimation of the SROI of the Opening Doors to the Outdoors (ODO) programme in North Wales (Makanjuola et al., 2023). The ODO is a 12-week walking and climbing intervention aimed at inactive individuals who experience low mental wellbeing. The SROI of the ODO programme in North Wales was conducted in 2022 by the Social Value Hub at the Centre for Health Economics and Medicines Evaluation (CHEME) at Bangor University. The results showed that, in the North Wales study, for every £1 invested in ODO programmes, £4.90 to £5.36 of social value was generated for stakeholders. In addition, interviews indicated improved mental wellbeing, increased physical activity, more social trust and better overall health. 

A subsequent evaluation (Social Value Cymru, 2023) looked at the social value created through developing the various programmes in Mid and South Wales, building on the learning from the ODO intervention in North Wales and utilising a social prescribing framework. This study explored the impacts for both participants and volunteers and found that social value is created through the project’s activities, with a SROI result that for each £1 invested, £7.12 of value is created. Volunteers felt more confident leading and supporting groups and having access to training helped many to feel more positive towards a career in the industry. Through the various projects, individuals had experienced positive changes in their mental and physical wellbeing. For the social prescribing projects, many felt less isolated within their communities and felt more positive about managing their own health and wellbeing.

The main report which measures the value of sport in Wales was the previous SROI study which measured the value of the sport sector in 2016/17.  It measured several outcome areas including health, subjective wellbeing, social capital, crime, education and volunteer labour.  It revealed that £3.43bn of social value was generated from £1.19bn of inputs, giving an SROI value of 2.88. This means that for every £1 invested in sport in Wales (financial and non-financial), £2.88 worth of social impact was created for individuals and society in 2016/17. The largest amount of social value (61%) was generated through subjective well-being (£2.08bn). Considerable social value was also created by social capital (£651m; 19%), health (£295m; 8.6%) and volunteer labour (£312m; 9%) (Sport Wales, 2018).

Value map

The Value Map is central to an SROI analysis.  It is also known as a 'theory of change' or logic model and is the framework used to build the SROI model.  The research team synthesised the stakeholder engagements discussed in the previous chapter, together with evidence provided by stakeholders to produce a map of the inputs, outputs and outcomes arising from engagement in sport in Wales.  Figure 4.1 summarises the Value Map for Wales. 

The Value Map presented in Figure 4.1 is an inclusive summary of all the outcomes identified by the stakeholders, third party research and published grey literature, including the previous SROI study for Wales.  The quality of evidence for the different outcomes and domains varies considerably. As the intended audience for this study includes Welsh Government, a high level of rigor was required. Therefore, the scope of the SROI study was narrowed to include only those outcomes that could be robustly evidenced.  This is consistent with the practice of most other population-level SROI studies. 

In total, 15 outcomes were monetised in the SROI across four domains, including ten health outcomes, two outcomes related to subjective wellbeing and social capital and one outcome relating to the non-market benefits gained by organisations utilising sports volunteers.  The outcomes included in the Wales SROI are presented in Table 4.1.

Table 4.1. Outcomes included in the SROI sport model for Wales
DomainOutcomePopulation group
HealthReduced risk of CHD All participants 16 +
  
Reduced risk of stroke All participants 16 +
Reduced risk of Type 2 diabetes All participants 16 +
Reduced risk of breast cancerFemale participants 16 +
Reduced risk of colon cancer All participants 16 +
Reduced risk of hip fracture All participants 65 +
Reduced risk of back painAll participants 16 +
Reduced risk of depression All participants 16 +
Reduced risk of dementia All participants 16 +
Increased risk of injuryAll participants 16 +
Subjective wellbeingImproved life satisfaction All participants 16 +
Improved life satisfaction Volunteers in sports clubs (16+)
Social CapitalImproved social capital (community networks, connections, and trust)All participants 16 +
Improved social capital (community networks, connections, and trust)Volunteers in sports clubs (16+)
OtherBenefits for sports organisations utilising volunteersAll volunteers (16+)

 

Figure 4.1: Value Map of sport in Wales
Stage 1Stage 2Stage 3
StakeholdersInputsOutputsOutcomes
Who and how many?What do they invest?Summary of activitiesWhat changes? 

Public sector

  • Welsh Government 
  • Sport Wales
  • Public Health Wales
  • Local Authorities
  • UK Sport
  • Schools
  • Higher Education Institutions

Private sector

  • Commercial sport providers
  • Employers with sports facilities

 

Third sector

  • Voluntary sports clubs 
  • Sport and Leisure Trusts
  • Sport NGBs
  • Sport-related charities 
  • Sport for Development organisations

Households

  • Sports participants
  • Sports volunteers

Financial 

  • Funding (e.g., sport development, administration, and staff costs) 
  • Capital expenditure on sport infrastructure building and renovations; neighbourhood sport in Wales
  • Participant expenditure (activity charges/fees; equipment costs; sport clothing and footwear; travel and other costs)

Non-financial

  • Volunteer time

Sport participation

  • Frequency of participation 
    • 150 mins per week
    • 30-149 mins per week
  • Intensity of participation 
    • moderate or vigorous

Sport volunteering

  • Frequency of participation 
  • Hours worked

 

 

Health

  • Improved physical and mental health
  • Increased sports injuries

Subjective wellbeing

  • Improved life satisfaction
  • Improved happiness 
  • Increased / reduced worthwhileness
  • Increased / reduced anxiety

Social capital

  • Enhanced community cohesion
  • Increased social inclusion
  • Increased trust 

Crime

  • Reduced anti-social behaviour

Education

  • Improved educational attainment
  • Enhanced human capital

Other

  • Benefits for sports organisations utilising volunteers

Inputs, outputs and outcomes

Inputs

Inputs are those things that stakeholders contribute in order to make activities possible.  Inputs are both financial (money) and non-financial (time).  Table 5.1 summarises the inputs for Wales. While the inputs were relatively straightforward to identify, care was taken to ensure that there was no double counting between organisations, for example Welsh Government and Sport Wales. A number of stakeholders identified in Figure 4.1 are not included in Table 5.1 because their inputs are captured elsewhere.  For example, the commercial sector is not included as all the inputs provided by this sector are counted in consumer expenditure on sport.  The total inputs for sport in Wales were approximately £1.35bn. In addition to spending by households and the public sector, this aggregate figure includes the replacement value of the time contributed by volunteers to support participation in sport and active recreation in Wales.

Table 5.1: Summary of the SROI inputs 
Stakeholder£(m)

Households

Activity charges/fees

Equipment costs

Sport clothing and footwear

Travel and other costs

751.21

207.11

217.68

222.71

103.71

Voluntary Sector

Time

429.51

Public Sector

Sport Wales

Local Authorities

166.33

31.54

134.79

Total1,347.05

Outputs

Outputs are a quantitative summary of an activity. There are two types of outputs for Wales, namely sports participation and sports volunteering.  These were sourced from the National Survey for Wales. Table 5.2 shows the participation statistics for sport and physical activity as well as the prevalence of sport volunteering in Wales among adults aged 16+. These statistics were used in the valuation of the health, subjective wellbeing and social capital outcomes.

Table 5.2: Adult participation and volunteering statistics for Wales 2021/22
Sport% Physical Activity%
Less than once a week50 <30 mins per week (Inactive)30
Once or twice a week18 30-149 mins per week (Fairly active)14
Three times a week or more 32 150+ minutes per week (Active)56
     
Volunteering (General)10   
Volunteering (Club)7   

Health valuation

To ensure that the estimates derived using our approach are robust and defensible, only those health conditions for which there is strong empirical evidence demonstrating the link between sport/physical activity and improved physical and mental health were included in the study. 

Table 5.3 presents the health conditions that were valued and the corresponding reductions in risk of disease among adults who take part in sport/physical activity at moderate intensity for 150+ minutes (or 75+ minutes of vigorous activity) per week. The risk reductions are guided by the UK Chief Medical Officers’ Physical Activity Guidelines and the related underpinning epidemiological evidence. 

Table 5.3 also presents estimated risk reductions for people who participate between 30-149 mins per week.  The assumptions for the risk reductions of participating 30-149 mins per week were derived assuming a linear-dose response relationship between activity level and risk reduction and assuming that this cohort takes part in sport/PA for an average of 60 minutes per week. The assumption is based on the consensus of experts working in academia and policy, and the CMO guidelines that such lower volumes (less than 150 minutes per week), lower intensities and lower frequencies of physical activity may also confer health benefits. This assumption is likely to underestimate rather than overestimate the value of the benefits, meaning the values derived will be conservative and defensible (which is a key principle of SROI). 

Table 5.3: Health conditions included in the SROI and risk reductions 
Health conditionPopulationRisk reduction (150+ mins pw)

Risk reduction 

(30-149 min pw)

CHDAll adults 16+35%14%
StrokeAll adults 16+35%14%
Type 2 diabetesAll adults 16+40%16%
Breast cancerFemale adults 16+20%8%
Colon cancerAll adults 16+20%8%
Hip FractureOlder adults 65+52%21%
Back painAll adults 16+25%10%
DepressionAll adults 16+30%12%
DementiaAll adults 16+30%12%

In order to derive an estimate of the health benefits attributable to sport and active recreation, we first calculated the cumulative value of these benefits for all forms of physical activity among adults who were ‘active’ (150+ minutes per week) and ‘fairly active (30-149 minutes per week). We then estimated what proportion of those who met the ‘active’ and ‘fairly active’ physical activity thresholds took part in sport (at least once a week). This was 65% and 45% respectively. The ratio was multiplied by the overall health value for physical activity to calculate sport’s contribution to health benefits. In other words, for each health condition the estimated value for sport is a sub-set of the overall value for physical activity.

Table 5.4 presents the number of cases of ill health prevented though people in Wales participating in sport.  Over 113,000 cases of ill health were prevented in 2021/22. Cases of ill-health prevented through sport were calculated using the risk reductions, prevalence data and participation rates for both ‘active’ and ‘fairly’ active participants.

Table 5.4: Cases of ill health prevented through sport 
Health outcomes150+ mins pw30-149 mins pwTotal
CHD16,6861,49318,179
Stroke10,35292611,278
Type 2 diabetes33,4883,11836,606
Breast cancer20119220
Colon cancer13411144
Hip fractures82291912
Back pain24,9472,06927,016
Dementia2,8072423,049
Depression14,8141,27516,089
Total104,2509,243113,493

The number of cases were then multiplied by the direct and indirect health care costs (Table 5.5).  The annual cost per person varies between each health condition. For some health conditions (e.g., back pain) the costs relate to health care only, whereas for others (e.g. CHD they also cover wider costing including informal care.  The availability of cost data for treating health conditions was variable.  In most conditions, data from Wales was used, but for any conditions which could not be sourced, we borrowed UK or England cost data.  We inflation adjusted costs to the year of study. 

Table 5.5: Annual cost per case 
Health outcomesHealthcare costs (£)Indirect costs (£)Total (£)
CHD1,0423,3144,356
Stroke2,54816,76319,311
Type 2 diabetes745n.a.745
Breast cancer20,60636,15956,764
Colon cancer20,60636,15956,764
Hip fractures19,69014,25833,948
Back pain265n.a.265
Dementia13,94881,48795,435
Depression76258334

The overall cost savings from participating in sport are presented in Table 5.6.  The total cost savings are £679m for the nine conditions presented, with 80% coming from people who meet the CMO guidelines of 150+ mins per week.  Of this, 22% (£151m) are direct healthcare cost savings, and 78% (£528m) are related to other indirect health costs.

Beyond the nine health conditions identified we have also placed a notional value on sport injuries using proxy data from England, which is based on the number of A&E admissions recorded as sports injuries and related cost data.  The cost of sports injuries is highlighted in red. The net health cost savings of participating in sport in Wales is £621m. 

Table 5.6: Health valuation for sport in Wales
Health outcomes150+ mins pw (£m)30-149 mins pw (£m)Total (£m)
CHD72.686.5079.18
Stroke199.9017.88217.78
Type 2 diabetes24.952.3227.27
Breast cancer11.431.0612.49
Colon cancer7.590.618.20
Hip fractures27.893.0830.97
Back pain6.600.557.15
Dementia267.8923.06290.95
Depression4.950.435.38
Sub total623.8855.50679.37
Injuries-46.55-11.64-58.18
Total£577.33£43.86£621.19

Wellbeing Valuation Analysis: subjective wellbeing and social capital

The research team used the Wellbeing Valuation Approach (WVA) to derive monetary values for subjective wellbeing and social capital¹, resulting from participation and volunteering in sport in Wales.  The previous SROI for Wales (2016/17) utilised subjective wellbeing (SWB) proxies for participation derived using data from the Understanding Society survey, which is a large, longitudinal and representative sample of the UK population. Whilst it is entirely appropriate to use UK data in the absence of Welsh data, these proxies are now dated, and given that SWB was a substantial proportion of the overall social value generated from sport in Wales previously, we conducted a wellbeing valuation specifically for Wales. 

The WVA calculates the amount of income required to bring about an outcome such as subjective wellbeing (or social capital), up to the level it would be ordinarily if participation (or volunteering) were excluded. We selected this approach as it is widely used and accepted as a valid measure for valuing non-market outcomes for participation and volunteering in the sport sector. 

Our study applied the WVA using data from the National Survey for Wales. The dataset for 2019-20 was selected as it was the most recent one that included variables on sport volunteering and income.  Table 5.7 presents the WVA values for subjective wellbeing and social capital derived for participation at different frequencies and volunteering through a club.  The value of sport volunteering is based on the variable: ‘volunteering through a sport club’ as general sport volunteering over 12 months did not produce a statistically significant result.

Table 5.7: WVA values (2019/20)
Health outcomesSubjective wellbeing (£)Social capital (£)
Sports  participation 3+ per week v less than 3 times per week1,5411,732
Sports participation once or twice per week v less than once per week. 1,0171,270
Sports volunteering through a club (last 12 months)1,7194,661

The values in Table 5.7 were inflated to the year of study and multiplied by the corresponding number of participants aged 16+ and volunteers in sports clubs.  Table 5.8 illustrates the value participants’ gain from higher subjective well-being was estimated to be £1.74bn and the value of volunteers was £316m. In total, the contribution of sport to subjective well-being in Wales was £2.06bn.  Similarly, the value of enhanced social capital created from participation was £2.02bn and from volunteering was £856m.  The overall contribution of sport to enhanced social capital in Wales was £2.87bn.

Table 5.8: Subjective wellbeing and social capital valuation
 Subjective wellbeing (£m)Social Capital (£m)
Participation1,741.082,015.67
Volunteering315.82£856.34
Total2,056.90£2,872.01

The replacement value of volunteers

In addition to the individual wellbeing and social capital benefits that volunteers gain from sport, they provide a non-market value for organisations which utilise them.  We use the replacement cost of volunteers as a proxy to represent this value.  We estimate this using the equivalent labour market value of volunteers' time, which is calculated using average volunteer hours, multiplied by average hourly earnings in Wales.  The value of this is estimated at £430m.

¹Social capital is defined as community connections, networks and trust

Calculating the SROI

The final stage of an SROI analysis is to calculate the SROI ratio. Table 6.1 summarises the calculation.  Total inputs are £1.35bn, of which households contribute over 55%.  The total value of all outcomes is £5.98bn.  The largest contribution is generated by social capital (48%), followed by subjective wellbeing (34%) and health (10.4%). The net social value (the difference between the value of the outcomes and inputs) is £4.63bn, giving an SROI ratio of 4.44.  This means that for every £1 invested in sport in Wales in 2021/22, £4.44 worth of social impacts are generated.

Table 6.1: Summary of the SROI Calculation
Social outcomesOverall £m%
Inputs1,347.05 100.0
Households751.21   55.8
Voluntary sector429.51   31.9
Public sector166.33   12.3
   
Outcomes5,979.61 100.0
Health621.19   10.4
Subjective wellbeing2,056.90   34.4
Social Capital2,872.01   48.0
Volunteer Productivity429.51     7.2
   
Net social value4,632.56  
   
SROI ratio4.44  

Table 6.2 presents the overall social value of sport in Wales by gender.  Men accounted for £3.48bn (58%) and women £2.50bn (42%) of the overall social value. This is primarily explained by a larger proportion of men participating and volunteering in sport than women. 

Table 6.2: Overall social value of sport in Wales by gender 
Social outcomesMen £mWomen £mOverall £m
Health318.69302.50621.19
 Prevention of disease349.94329.43679.31
Increased injuries-31.25-26.93-58.18
    
Subjective wellbeing1,165.85891.052,056.90
Participants935.08806.001,741.08
Volunteers230.7785.05315.82
    
Social Capital1,708.281,163.722,872.01
Participants1,082.55933.122,015.67
Volunteers625.73230.61856.34
    
Volunteer productivity291.14138.37429.51
    
Total3,483.972,495.645,979.61
%58%42%100%

Table 6.3 presents the overall social value of sport in Wales by age.  The value of participants aged 16-64 was £4.66bn, accounting for 78% of value reflecting the fact that the majority of participants and volunteers in Wales are under the age of 65.  The value of participants over 65 years of age was £1.32bn.

Table 6.3: Overall social value of sport in Wales by age
Social outcomes16-64 (£m)65+ (£m)Overall (£m)
Health70.22550.97621.19
Prevention of disease120.16559.21679.31
Increased injuries-49.94-8.24-58.18
    
Subjective wellbeing1,761.91294.992,056.90
Participants1,494.50246.581,741.08
Volunteers267.4148.41315.82
    
Social Capital2,455.27416.732,872.01
Participants1,730.20285.472,015.67
Volunteers725.08131.26856.34
    
Volunteer productivity369.2160.30429.51
    
Total4,656.611,323.005,979.61
%78%22%100%

Ordinarily in an SROI the valuation of outcomes would be adjusted for duration (how long an outcome lasts) and drop-off (the deterioration of an outcome over time).  However, as with previous population-level studies, the SROI of sport in Wales is a snapshot of a single year, therefore it is not necessary to adjust for these factors. Other adjustments such as deadweight (what would have happened anyway), is implicit in the case of non-participation, and attribution is already accounted for because many of the empirical studies on which the monetary estimates are based are of a multivariate nature, and they have already incorporated consideration of other likely contributing factors.  As the study considers all sports activities, displacement (how much of the outcome has displaced other outcomes) is not relevant, although sports may displace other leisure activities, which has not been taken into account. 

The research included a sensitivity analysis of the social outcome valuation.  The research team is confident about the health data, and so we tested the sensitivity of the benefit assumptions in the SROI model in two other ways.  In the first scenario (HIGH), we used an alternative approach to valuing subjective wellbeing and social capital.  Rather than using the financial proxy derived for sport only, we utilised the value for sport and physical activity, and adjusted the participation rate based on sport’s share of overall physical activity, in the same way we did for health. This resulted in a higher social value (£6.45bn), and an SROI of 4.79.  In the second scenario (LOW), we assumed that all volunteers in sports clubs are also participants, and that those people who participate and volunteer benefit from the subjective wellbeing or social capital value associated with their volunteering only, rather than both.  This scenario reduced the social value (£5.44bn) and the SROI to 4.04.  In both cases the SROI ratio does not fluctuate materially, producing a range of 4.04-4.79, which lends further credence to the research findings.  

Conclusion

This study demonstrates that sport in Wales generates considerable value to society across several wellbeing goals including A healthier Wales, A Wales of cohesive communities and A Wales of vibrant culture and thriving Welsh language. The SROI also demonstrates that the value generated by sport in Wales is greater than the cost of providing those opportunities by some margin, suggesting that investment in the sector not only contributes to the wellbeing of individuals and society, but it is also good for the economy. 

The SROI study was deliberately narrower in scope than the previous SROI for Wales, by only including those outcomes that could be robustly evidenced, to maintain a high level of rigour.  As such we have excluded some outcomes included in the previous study for which insufficient empirical evidence exists, such as educational attainment and crime prevention.  Thus, the findings presented in this report are again likely to be a conservative assessment for sport in Wales.

The research team suggest several high-level recommendations, based on the findings of the study.  First, we recommend that Sport Wales utilise the findings of this study to inform and engage stakeholders across the sector, from the grassroots through and up to Welsh Government.  Second, we recommend that this study is used as a high-level baseline for measuring progress in the sector and is repeated periodically, approximately every 3-5 years, depending on the availability of new evidence and data for Wales. Third, we recommend utilising this study to inform future priority research areas.  A significant improvement of this study from the previous iteration is that it uses Welsh data to derive valuations for subjective wellbeing and social capital. However, notable omissions and limitations in this study that merit investigation in the future include the measurement and valuation outcomes for young people and a fuller investigation of the negative effects of participation.

References

Brier, H., Mellick, M., Edwards, S., and Wasley, D. (2023). School of Hard Knocks Comic Relief Adult Course Evaluation. Centre for Health, Activity and Wellbeing Research, Cardiff Metropolitan University.

Brier, H., Thomas, O., and Mellick, M. (2023). ‘Step-into-Sport’: A Qualitative Evaluation of Participant and Stakeholder Perceptions. Centre for Health, Activity and Wellbeing Research, Cardiff Metropolitan University.

Council of Europe (2021). European Sports Charter. Available online: https://search.coe.int/cm/Pages/result_details.aspx?ObjectID=09000016804c9dbb

Department of Health and Social Care (2019). UK Chief Medical Officers' Physical Activity Guidelines. [online]. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/832868/uk-chief-medical-officers-physical-activity-guidelines.pdf

Makanjuola, A., Lynch, M., Hartfiel, N., Cuthbert,  A., and Edwards,  R T. (2023). Prevention of Poor Physical and Mental Health through the Green Social Prescribing Opening Doors to the Outdoors Programme: A Social Return on Investment Analysis. International Journal of Environmental Research and Public Health. 20 (12): 6111. Available at: https://doi.org/10.3390/ijerph20126111

Sheffield Hallam University (2018).  Measuring the social and economic value of sport in Wales: Social Return on Investment of sport in Wales 2016/17. Unpublished report submitted to Sport Wales. 

Social Value International (2019).  Standard on applying Principle 1: Involve stakeholders. Available online: https://www.socialvalueint.org/principle-1-involve-stakeholders

Social Value Cymru. (2023). The Social Impact of Opening Doors to the Outdoors. Enabling Natural Resources and Wellbeing Project. The Outdoor Partnership.

Sport Wales (2023a).  The Vision for Sport. Available online: https://www.sport.wales/our-vision-for-sport/

Sport Wales (2023b). Sport Wales: Enabling Sport in Wales to Thrive. Available online: https://www.sport.wales/sport-wales-strategy/

The Nielson Company. (2022). Football Association of Wales UEFA National Association Research. 

The Outdoor Partnership. (2021). The Outdoor Partnership Strategy (2021-2031): Enhancing People’s Lives through Outdoor Activity. Available online:  https://outdoorpartnership.co.uk/our-strategy

Welsh Government (2021) Well-being of Future Generations (Wales) Act 2015 Essentials Guide.  Available online:  https://www.gov.wales/sites/default/files/publications/2021-10/well-being-future-generations-wales-act-2015-the-essentials-2021.pdf

Research

We collect, manage and analyse data about sporting activity in Wales.

Find out more