Yes, but what he doesn't understand that a booker's memory is short and paranoia rules!
I bet Spike said something like " Well, I can give you a Tuesday, but I can only pay the band $450", and the manager couldn't or wouldn't accept those terms. Then he basically told him what a fool he was (and worse).
Then the artist would have the option to play for expenses and hope that he would eventually draw a following and press. I'm not saying that he should, but that's his option.
I'm sure that this artist is a worthy musician, but since it seems that he's spent quite a few years in Philly and in academia, he's really starting at the bottom of the name recognition ladder.
You would believe how many small venues make deals for a percentage of the door, by the way. No guarantee.
Now, there's lots of young artists who will travel around the world and play as many dates, in as many venues that they can stuff in their schedule with those kind of terms and hope to come out ahead when they get home after the splits and cd sales, but I don't expect a artist of this particular age to enjoy roughing it for minimal economic and artistic gains.