If you listened carefully to the recording, MtheGM, you would have heard the financial arrangement for the evening, which was that MS did not receive an advance or guarantee, but was to receive the gate--however since the manager offered refunds, there would be no gate, which was why she, likely ironically, discussed passing the hat.

It is worth noting that, while the manager gave the audience back the money that MS was to receive, he made a point of letting the audience know he still expect them to pay their bar tabs, so his act of magnanimity didn't cost the club anything.