A few of us were reminiscing the other night, and I recalled two different groups where some (or all) of the members had to be pretty sauced to play at all. It was a state-dependent thing.
The first group were just idiots about their personal behavior and I think they thought it was part of the rock/roll image to swig booze on stage and act like fools. They were moderately successful on the local level, and I sat in with them for two nights.
The second night, the bar owner presented them with their tab, and it exceeded the revenue they'd made for playing. The singer (who was drunk) made a scene, which of course led to them not being invited back. Fortunately, I was just a hired hand and not part of the band. I don't recall ever hearing about them after that. Most likely, word got around.
The second was when I was doing engineering for a demo tape (yes, I'm dating myself). The band showed up with two bottles of Seagrams and a case of Old Milwaukee. I had to yell at them not to smoke in the studio. When I complained to the manager/agent/whatever, her response was that they had to "get up to cruising altitude" to play right.
Fortunately, I was not a "member" of either group and I didn't have anything riding on it. The first one didn't affect my reputation at all, since I was a) "just" the bass player and b) just a temp. Same idea with the second. I got paid by the hour, and they took a long time to get things down on tape.
Some folks like to have a beer or a glass of something on stage, and that's cool. But when regular alcohol abuse becomes part of the equation, that's a big warning sign.