Both times I did the "band purchase" thing I came out ahead. .....we didn't have the funds to pay anyone as they left, the second band I'm not sure why no one got paid out.
When we started the group I got fired from we all agreed to come up with $500 to use as a down payment on a PA system. I found out only later that I was the only one who actually forked over that cash and that was the entire down payment! and than we played gigs and used a majority of all gig income to pay off the PA and a used school bus for transporting it all.
The music store was in a different town from where I lived so the guitar player carried out all the transactions, hence all paperwork was in his name. I had X'd off one Saturday that I couldn't play, they had an opportunity to play and I gave my blessing to having a fill in because I was busy.
They offered the other guy my spot that night, and left me a voice mail that I was out. And since all the gear was in the guitarist's name and it was all in the bus, also in his name, and on his property they'd have me arrested for trespassing/theft if I tried to get any of it back. I not only lost all the $$ I'd invested but also some speakers, stands, and microphones that I'd had before this band but they were on the bus. They kept it all and I was crap out of luck.
Soured me in a big way, all I had left was my bass and my amp. Put the bass in the case and literally didn't touch it for close to 3 years. Slow process to start playing again but glad I eventually did.
