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I don't think the Board have fucked up at all. If the media are to be believed, they've offered Lampard a fairly reasonable contract, one that they have probably been offering for the past 2 seasons as well. Lampard has, up until now, consistently put off negotiations. If he leaves, it will be because he wanted to leave, not because the Board forced him to leave.
It looks like Lampard is trying to engineer a way out of the club. He has put off contract negotiations for 2 seasons, and when he finally is willing to negotiate, he is demanding ridiculous terms that he knows the board will never agree to.
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All cool. Personally, maybe him and the board are trying to save face, so all come out smelling like a "bed of roses". Who knows?
I for one hope it gets resolved one way or the other, as my club needs to fix its midfield, and if Lampard is not coming, then we can move on.