Insights

Unlocking the True Value of Sport: How Social Return on Investment Analysis Reveals Hidden Benefits

01/07/2025

Ryan Buckland

Winter is here, which means the middle of the season for football codes across the country, both professional and amateur. In my household, it means three kids needing new boots, an explosion in our watermelon and lollies budget (for a half-time energy boost), and a whole lot more driving around in the afternoons and weekends to ferry them from oval to oval.

It seems like a slog, but there’s nothing I enjoy more than this time of year.

That could be because sporting days are in the rearview for me personally. My code of choice was cricket, which in the 2000s meant long Saturdays in the blazing Perth sun for a handful of balls faced before my inevitable, sorry demise.

Kids' sport, and amateur sports in general, is a fundamental part of Australian society. Most kids participate in some sort of organised sport through the course of a year. According to Sports Australia’s Ausplay, 71% of Australian children participated in at least one form of organised sports activity in 2024, with this number peaking at 86% for 9-11-year-olds.

We run out of puff as we get older, with organised sport participation rates for adults ranging from 52% in the 18-24-year-old bracket and steadily declining to the low 30s as we age into our 50s and 60s.

As time constraints emerge, careers take off, and perhaps children come onto the scene, getting out and playing sport drops down the priority list. But research compiled by ACIL Allen suggests we may collectively be missing a trick.

The Economic Consulting Perspective: Quantifying the Social Return on Investment in Sport

In 2022, ACIL Allen was engaged by SportWest – Western Australia’s peak body for sports associations – to prepare a study that examined the social benefits of sports participation in the State. It was the first study of its kind and sought to place a monetised value on sports participation.

The study, titled The Social Return on Investment of Organised Sports Participation in Western Australia, found the average participant in club-based sport realised benefits of $10,178 a year through a range of channels:

Working with SportWest and a selection of State Sporting Associations, ACIL Allen deployed a Social Return on Investment (SROI) methodology.

What is Social Return on Investment (SROI)?

SROI is a relatively new analytical toolkit that helps mission-based organisations – both for-profit and not-for-profit – measure and quantify their impact on society. The way I describe it to clients is like a supercharged cost benefit analysis, but rather than focusing strictly on financial outcomes, we integrate quantitative and qualitative evidence to monetise how an entity, program, or investment supports economic and community outcomes.

Take the SportWest study, for example. It is widely accepted that being physically active improves physical health, which in turn enhances quality of life. Using academic research and Australian Institute of Health and Welfare (AIHW) data, the study determined a benefit of around $1,000 to $1,500 per participant per year—equating to just shy of $1 billion in monetised social value annually.

The Power of SROI in Economic Consulting

We’ve been fortunate enough to apply Social Return on Investment analysis in various sectors, including health, aged care, crime and justice, and education.

A SROI study requires careful planning and consideration. While some claim there is a “right” way to deliver SROI analysis, in our experience, what matters most is access to a diverse skill set and the ability to rigorously examine evidence of impact and develop robust quantification methodologies.

This means that an SROI study benefits from the expertise of an independent economic consulting firm that can provide an objective perspective.

It is tempting to reach for the highest possible benefits in these kinds of studies to justify a program or intervention. Over the years, I’ve seen claims of SROI ratios in the 20s and 30s to one, meaning for every dollar invested (across financial and non-financial resources), there is between $20 and $30 of monetised value in return.

Programs purporting to be that good shouldn’t need an SROI study to confirm their greatness! Which is why such claims should be met with scepticism.

At ACIL Allen, our approach to SROI involves building a deep understanding of the subject in question through stakeholder engagement and a rigorous review of available evidence. We then collaborate with our clients to develop an impact framework—before considering what can be monetised and what will be described qualitatively. Once the framework is agreed upon, we build bespoke calculation and estimation methods, using client data supplemented by academic research and other credible sources.

The Growing Recognition of SROI by Government and Organisations

Government agencies—often the funders of organisations and programs where these techniques are most applicable—are increasingly receptive to SROI as an analytical tool.

For instance, I’ve heard anecdotes of the SportWest SROI study being used to support funding applications by State Sporting Associations for new infrastructure investments to the Western Australian Government. And successfully, too!

So, with the winter sports season in full swing, a big thank you to all the volunteers, parents, administrators, and others who make sport happen across Australia. Our SROI analysis found that, in Western Australia alone, the economic and social value created by the sector was $9.2 billion per year.

All those extra kilometres, bumps and bruises, and early weekend alarms? They’re worth it after all.

Could an SROI Study Help Your Organisation?

If your mission-based organisation is looking to quantify its impact, economic consulting expertise can help unlock valuable insights.

Get in touch with us using the Contact Us form on our website or click here.