I think Kentucky has a great shot to win the appeal.  Based on precident among foreign players who received "extra benefits," the NCAA should rule that the family has to pay back the money, and that the penalty gets reduced to a one-year suspension. 

There's absolutely no way they could go any less than one year, though.  Not when players, including Vanderbilt's own Steve Tchiengang, have been suspended for varying (and in some cases significant) numbers of games for receiving considerably smaller amounts of extra benefits from their host families (rather than a Professional team).  But still, the ruling was excessive - a year would be more fair.

Kentucky AD Mitch Barnhart got it right when he said: "It is our hope that he will be allowed to continue his academic and athletic career at Kentucky."

The above suggestion would allow for just that, Mr. Barnhart.  You could even suggest as much in your appeal.