I think you've hit on it. From what I've heard, the clubs were profitable.
All but Comedy Warehouse and BET.
I remember shortly before PI closed, a number of University of Florida or Florida State players were arrested at PI. I don't know if this was a factor, but Disney had to have hated the negative publicity.
It was actually high school kids who had been accepted to FSU...and they were taken into custody (not sure it was a formal arrest) over by the AMC, on the West Side. No charges were ever pressed, it turned out one was the son of a WDW Vice President.
Other than a couple drunk College Program kids getting into fights in Motion, I never saw the "rough crowd" that seems to have become an online meme. A fellow poster who works in the industry insists this is why BET Soundstage was the death knell for PI--tourists from the northeast corridor suburbs saw that name and instantly formed an opinion on what the crowd at PI must be. Not suggesting this about you, Ignohippo, I know you're just relating a story you've heard--but I do think that was part of the false reputation you allude to being created in people's heads. It's a shame, but it's also how things work in the real world. Really, the idea that gang members had nowhere better to hang in greater Orlando than a comedy improv club and an 80s bar at Disney World was laughable.
While the AC was popular before, it's legendary now. I don't think they thought the AC closing would be as big of a deal as it has become.
Alright heresy time. Let me preface by saying, I am the biggest AdvClub fan you will ever meet.
The place was never THAT popular. Maybe 400 people passed through on a great night, and at least a third of those were "regulars" (although, in fairness, regulars came from all over the U.S.). There were nights guests barely outnumbered cast. Yes, the Club was profitable if you factor in admission charges and the Jungle Juice bar outside, but it was never a money-making machine like 8-Traxx or Mannequins.
And it was a love/hate place. Probably half the people who walked in walked out never wanting to go back. But that other half...it stayed with them. As I said, people would plan cross-country vacations just to visit the Club, then kill time during the day in the parks. People remembered the Club because it was so unique. And those who liked it absolutely LOVED it. The announcement of the closing was a shock, and that's really when the insane crowds started materializing. For people who hadn't been there in a year, that probably contributed to their impressions of it.