Shane:
This school actually did walk off the field and forfeited a football game becasue the opposing team had a female player.
There is a component of religious freedom here but that has to be balanced against the fact they are a pseudo member of the KSHSAA. If they want to play "regular" schools then they need to act regular. If they want to follow Pope Pius X then fine, just play other schools that keep women in "their place" and treat women as subservient to men.
But I've got some shocking news for these folks, there is a real good chance these male students are going get married and then they'll be bossed around by women most of their adult lives, so they better get used to it.