Well, no:

Article: "...they told the venue they sold 150 tickets (a sell out) and only one person actually showed up who bought a ticket."

Even if they pay the band only after the show, the venue might get $16 for several hours of staffed operation.

People attending a show buy tickets, food, and drinks from the venue.

So, the band's payment is typically easily recouped because the venue expects a minimum guaranteed income (say 40% capacity, average of $6/attendee spent on incidentals).

If zero people show up, they have the expense without the income, having sacrificed the night that could have gone to a more popular band, while also paying workers and incurring utility expenses.