It is always best to err on the side of protecting the kids. I think it is a scare tactic to suggest that child protective services is going to remove a kid from their home over one incident. But, maybe they do need to look deeper.
I wonder if some of the dads would tolerate some other adult treating their sons the way the dads do. If you would complain to the school board about a coach doing this to your son, why is it ok to do it yourself?