AMDP Investment DRAFT
TO: Clark Hansen, CEO, AMDP
FROM: Jordan Diamond, R&D, AMDP
DATE: March 10, 2023
SUBJECT: Madison Square Garden Entertainment Corp. Investment Analysis
You asked me to identify and research possible investment opportunities for Anima Mundi Development Partners (AMDP). Focusing on our commitment to a green economy and social responsibility, after consideration, I recommend the Madison Square Garden Entertainment Corporation (MSG) for investment, a publicly traded entertainment holding company headquartered in New York City. Included in this memo:
Our AMPD standards for investment
MSG background (financial track record & business practices)
Critical appraisals of MSG from industry sources
My investment recommendation
AMDP Standards
Triple Bottom Line
Firms should measure their social and environmental impact, in addition to their financial performance. The triple bottom line includes the “three Ps”:
Profit: Strategic planning initiatives and key business decisions are generally carefully designed to maximize profits while reducing costs and mitigating risk.
People: A business’s societal impact, or its commitment to people with focus toward creating value for all stakeholders impacted by business decisions, including customers, employees, and community members.
Planet: Businesses driving positive change to make a positive impact on the planet. (HBS)
Corporate Social Responsibility
A business model in which companies integrate social and environmental concerns in their business operations and interactions with their stakeholders instead of only considering economic profits. (HEC Paris)
Social Enterprise
A social enterprise refers to a business with certain social objectives as its primary goal while using a commercial structure to run the organization. Social enterprises usually attempt to make a strong societal impact while maximizing their profit as well, which is then used to fund their social programs. (Corporate Finance Institute)
Carbon Footprint
The amount of carbon dioxide (CO2) emissions associated with all the activities of a person or other entity. It includes direct emissions and often includes the emissions of other greenhouse gasses. Carbon footprints are measured and focus on the greenhouse gas emissions associated with consumption. It is important to reduce the carbon footprint because it adversely affects the planet. Many unusual climate changes are a result of increasing CO2 emissions. The effects on the planet can have threatened various wildlife species into extinction and displacement. Lastly it can negatively impact human health and slow economic growth. (Britannica, DBS)
Background
Company Description
CSR Report, CSR Report
MSG Sphere London case study, Case Study
Financials
Analysis
Seeing Librarian for external help
Financial experts in field opinion
Recommendation
Invest
Initially see strong financials and undervalued
https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line
https://corporatefinanceinstitute.com/resources/esg/social-enterprise/
https://www.britannica.com/science/carbon-footprint
https://www.dbs.com/digibank/in/articles/lifestyle/importance-of-reducing-carbon-footprint
https://london.msg.com/factsandfaqs/#environment
https://www.msgsports.com/wp-content/uploads/2022/11/MSG_2022_CSR_Report.pdf
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