OP, as someone playing in an originals band who also books shows, this is not an unusual situation. With the caveat that the $175 is split between bands, i.e. you're paying $175 between all the bands to cover the cost of the venue and sound for the whole night. You take 100% of the door money and split it between bands (or just yourself if there are no other bands) how you see fit.
This isn't play to play, it's standard for most smaller bars and venues putting on smaller originals bands as below. The only thing to be aware of is that the $175 is kinda high to pay for a sound person, the charge here from all the venues is about $75.
If you're being asked to kick in $175 per band on a multi-band bill then that's something to laugh and walk away from.
100% agree with this, I suspect a lot of people on here are in covers/functions bands and don't have to deal with anything other than options A or B. Unkown originals almost always get the C deal