{"id":561378,"date":"2021-04-05T04:00:50","date_gmt":"2021-04-05T04:00:50","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/blackboards\/the-eur-100-mn-right-to-dream-mansour-group-partnership-kicks-off-a-new-model-for-esg-education-investment-in-egypt\/"},"modified":"2021-04-05T04:00:50","modified_gmt":"2021-04-05T04:00:50","slug":"the-eur-100-mn-right-to-dream-mansour-group-partnership-kicks-off-a-new-model-for-esg-education-investment-in-egypt","status":"publish","type":"blackboard","link":"https:\/\/enterpriseam.com\/egypt\/blackboards\/the-eur-100-mn-right-to-dream-mansour-group-partnership-kicks-off-a-new-model-for-esg-education-investment-in-egypt\/","title":{"rendered":"The EUR 100 mn Right to Dream - Mansour Group partnership kicks off a new model for ESG education investment in Egypt"},"content":{"rendered":"

<\/a> The Right to Dream - Mansour Group partnership kicks off a new model for ESG <\/strong>education investing in Egypt:<\/strong> Right to Dream (RTD)<\/a> \u2014 which gives young football talent an education and trains them in football through academies in Ghana and Denmark \u2014 is kicking off a EUR 100 mn partnership with Man Capital<\/a>, the Mansour Group<\/a>\u2019s UK-based investment arm, which, among other things, is looking to launch an academy in Egypt. The partnership hits all the right notes for us. It\u2019s got education, sports, and with it an interesting model for ESG investing here in Egypt.<\/p>\n

RTD\u2019s plans for Egypt?<\/strong> Establishing a EUR 30 mn RTD Egypt academy, to give 30 students a chance to potentially play in top tier European leagues, with plans for that number to grow to 100 students by year four. And for those with aspirations beyond football, some 50% of RTD\u2019s students will attend top universities, while the other 50% will go on to pursue professional football careers, with attendance for all students being tuition-free. The Mansour Group\u2019s investment will help RTD diversify revenue, away from reliance on transfer fees.<\/p>\n

We sat down (virtually) with RTD\u2019s CEO Tom Vernon and RTD Egypt\u2019s new MD Mohammed Wasfy<\/strong> to discuss RTD\u2019s business model, education vision, and growth plans for Egypt.<\/p>\n

The Egypt opening is an important step in RTD\u2019s expansion plan:<\/strong> The Egypt expansion is a key part of a strategic plan to expand RTD in Africa, the UK and eventually Europe and the US, says Vernon. One organization-wide focus is expanding programs for women and girls, and a new Egyptian professional women\u2019s team will be an integral part of the Cairo academy. \u201cWe've been really excited about the quality of talent in the Egyptian market,\u201d he adds.<\/p>\n

What does RTD actually do? <\/strong>RTD academies offer education, football training and character development, serving over 140 graduates<\/a> and 82 existing students. In Ghana, students usually join<\/a> RTD aged 11, with a five-year contract, before pursuing academic or professional football paths. Students have full academic days, typically including 90 minutes of football training in the early morning.<\/p>\n

Students attend RTD on full scholarships: <\/strong>Attending RTD currently costs an estimated USD 25-30k per year per student, and the organization covers all, says Vernon. Partner schools and universities in the US and UK provide scholarships for students who follow the academic path to study abroad, with over USD 45 mn in scholarship funding raised in the US.<\/p>\n

Academic programs are tailored by country:<\/strong> There\u2019s no one-size-fits-all RTD approach to education. Here in Egypt, students will follow the national curriculum, accredited by the Education Ministry, taking classes in English and Arabic and graduating with the Thannaweya Amma, says Wasfy. Those following the academic track will be eligible for universities in Egypt or the US. The academy in Ghana on the other hand, is a Cambridge IGCSE school, fully accredited by the British Council and Ghanaian Education Ministry. RTD has several school partnerships in Denmark, for students of the Danish academy, Vernon says.<\/p>\n

Many on the pro football track play for RTD-owned Danish Superliga club FC Nordsjaelland (FCN). <\/strong>Sixty-one graduates from the Ghana academy have played football professionally<\/a>, including in North America\u2019s MLS, the Champions League and World Cups. RTD bought FCN in 2015, and the club has since founded a professional women's team that won the 2020 National Cup<\/a>.<\/p>\n

But what about students who decide football may not be a career for them? <\/strong>It\u2019s roughly a 50-50 split between students that follow the academic track and students that follow the pro football track. \u201cIn 20 years, about half our students have gone to the US aged 15, attending private USD 55k a year boarding schools,\u201d says Vernon. \u201cFrom there, they go on to university. Students have attended top US universities through our program.\u201d Those on the pro football track remain at the academy for another three years, completing the BTech program.<\/p>\n

Now, everything\u2019s kicking off for the academy in Egypt:<\/strong> Construction of the academy, located in Palm Hills\u2019 Badya in Sixth of October city, is due to start imminently. Interviews for the Head of School are already underway.<\/p>\n

RTD Egypt will admit some 30 students in its first year, reaching its maximum capacity of 100 students by year 4, <\/strong>says Wasfy.<\/p>\n

June-September will see trials of some 30k children across Egypt to recruit talent:<\/strong> In six different regions spanning the country, RTD organizers will hold football events lasting 2-3 days, so they can assess local children on the pitch, says Wasfy.<\/p>\n

They\u2019ll also test academic performance.<\/strong> \u201cWe don\u2019t recruit just for the best footballers and then send some of them to the US,\u201d says Vernon. \u201cWe take the highest academic achievers with a solid football level, as well as the highest football achievers with a variable academic level.\u201d<\/p>\n

Currently, revenue comes primarily from transfers: <\/strong>Transfer fees provide a significant percentage of RTD\u2019s annual budget, says Vernon, though he believes the system needs a review. \u201cWe feel the current transfer system devalues the African player. That\u2019s one reason we bought FCN. Now some of the best young players in Africa and Scandinavia play on our team.\u201d FCN has generated<\/a> transfer fees of over USD 76.6 mn since the acquisition, mainly from academy graduates.<\/p>\n

The Mansour Group investment helps diversify RTD\u2019s revenue streams<\/strong>, Vernon says. \u201cThe partnership is EUR 100 mn, reflecting the value of existing assets I\u2019ve built over the years,\u201d he says. In part, this covers Egypt\u2019s capex construction costs and operating costs. \u201cThe Mansours are totally underwriting the first years of the academy, but then RTD\u2019s business model should start to generate some of its own revenues too.\u201d This would focus on commercial sponsorship \u2014 likely brand partnerships across programming products and services \u2014 along with some not-for-profit funding, primarily from the US.<\/p>\n

It\u2019s a long-term investment, with social rather than financial returns: <\/strong>Man Capital isn\u2019t investing in RTD as a CSR venture, Vernon and Wasfy state clearly. \u201cIn the UK, the business could be framed as a for-profit, not-for-dividend social enterprise,\u201d says Vernon. \u201cWe see it as a progressive way of investment.\u201d Neither side plans to exit, nor has an IPO ever been discussed, he adds.<\/p>\n

So what do the coming 5-10 years hold for RTD? Expansion, tech and media investments, and acquiring more football clubs: <\/strong>Disseminating RTD\u2019s values in Africa and Europe is important for the growth model, says Vernon. This includes expansion, and investments in tech and media to help change conversations about the potential of talented young Africans. Scaling university partnerships and acquiring more football clubs are also core to the strategy, he adds.<\/p>\n

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