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Ed didn't even need to cancel anything. He could've said that he wasn't going to drop Macklemore and the venues would then have to breach their own contract with him. He would've still gotten paid out and then some for breach of contract! But he decided to be complicit.
The production company dropped Macklemore, Ed did not have a contract with Macklemore. Ed didn't cause any of this, he just didn't speak up when he should have.
Production company? That's not right and that's never been mentioned.
It's the several managements of the venues that colluded together to give Ed Sheeran an ultimatum which was that he either tells Macklemore that he's dropped or they won't host the show anymore (which includes Ed).
To add insult to injury, the venues used Ed to pass the message on to his friend, Macklemore. So obviously taking a side against his own friend by saying "hey, sorry, they decided to drop you from the show or we're both dropped".
So in more ways than one, Ed made the decision to drop Macklemore from his tour to ensure that he could continue touring.
https://www.rollingstone.com/music/music-news/ed-sheeran-macklemore-tour-statement-1235626937/
From the article:
It is fair to criticize his decision to go with their decision. It is not fair to say he decided to drop Macklemore. There is a difference there and I think we should acknowledge that.
Ed's choices here are not easy to make. If he sides completely with Macklemore and cancel the rest of the tour, then lots of people would suddenly be out of a job. If it were me that is the last thing I would want to do. I will say that he definitely could have handled this situation in a much better way by expressing his personal opinions more clearly and speaking out against Macklemore being dropped. But understand Ed is a politically loud person, so it isn't in his nature to act that way. There are plenty of things about his reaction criticize here, but saying he is responsible for Macklemore being dropped is insincere. He likely could have and should have done more to fight this, but he isn't the cause.