Peter Ridsdale has been barred from acting as a company director until 2020, the Insolvency Service (IS) announced on Wednesday.
Ridsdale, 60, has given an undertaking to the Secretary of State for Business, Innovation and Skills that means he cannot act as a director or manage or control a company in any way.
The former Leeds, Barnsley and Cardiff chairman, currently chairman of football at Preston, was handed the seven-and-a-half-year ban after a company investigations team looked into his time as a director of WH Sports Group Limited.
His wife Sophie was a co-director of the company and was also barred, being given a shorter disqualification that runs until 2016.
Investigators found WHSG, which traded between 2003 and 2007, was used by Ridsdale to provide sports and leisure consultancy services to football clubs. It went into liquidation on 22 April 2009 owing almost £480,000.
The IS statement said the investigation found that, between May 2007 and March 2009, Ridsdale caused payments of £347,000 for services provided to the football club of which he was chairman to be paid into personal accounts held in his name.
It also found he had failed to disclose those relevant transactions to the liquidator of WH Sports Group Limited. The liquidator only became aware of them when information was provided by the club.
Claire Entwistle, the director of the team that carried out the investigation, said: "As someone who has had many directorships, Mr Ridsdale ought to be aware of the responsibilities that come with such a position."