Ridsdale gets seven-year director ban
PETER Ridsdale, the former chairman of Leeds United and Barnsley football clubs, has been disqualified from acting as a company director for seven-and-a-half years.
The ban follows an investigation by the Insolvency Service.
The 60-year-old who lives near Carnforth, joined Preston North End last year as chairman of football. He will continue to hold this role as it is not a directorship.
The disqualification, which starts on October 19 and lasts until April 2020, relates to his conduct as a director of London-based WH Sports Group (WHSG). His wife and co-director Sophie Ridsdale, 45, has been disqualified for three-and-a-half years.
WHSG traded from 2003 to 2007 and was used by Mr Ridsdale to provide sports and leisure consultancy services to football clubs. But it went into liquidation in April 2009 with liabilities of at least £478,698, including £442,353 owed to HM Revenue & Customs (HMRC).
The Insolvency Service said Mr Ridsdale did not dispute that while chairman of Cardiff City, between May 2007 and March 2009, some £347,000 of work carried out by WHSG for Cardiff was paid into personal bank accounts.
He also failed to disclose the relevant transactions to the liquidator of WHSG, who did not become aware of them until July 2010 when information was provided by the football club.
He also failed to ensure that WHSG paid corporation tax, PAYE, National Insurance and VAT. At liquidation WHSG’s liabilities included £166,421 in unpaid corporation tax, £102,279 in unpaid PAYE and NIC, and £173,653 relating to unpaid VAT.
Commenting on Mr Ridsdale’s ban, Claire Entwistle, director of Company Investigations North at The Insolvency Service, said: “As someone who has had many directorships, Mr Ridsdale ought to be aware of the responsibilities that come with such a position.
“The protection of limited liability is available to those who comply with their obligations as company directors. If those obligations are ignored, the protection will be withdrawn, as Mr Ridsdale has found to his cost.
“One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors are maintained, and these disqualifications should serve as a reminder that The Insolvency Service will investigate unacceptable conduct and deal robustly with directors who harm creditors by using unacceptable financial practice.”
Mr Ridsdale rose to prominence with Leeds United where he was chairman from 1997 to 2003. But the club borrowed heavily under his tenure and when he left it was in financial turmoil. He went on to buy Barnsley before joining Cardiff.
In a statement Mr Ridsdale said: “I can confirm that I have agreed a voluntary undertaking not to act as a company director as a result of ongoing issues with a personal matter which occurred in 2009.
“I am currently undertaking a role of ‘Chairman of Football’ at Preston North End but am not a director nor at any time have I sought to be one.
“The issues that have brought about this voluntary undertaking are currently in the hands of my lawyers who are dealing with all outstanding issues including the professional advice that was given to both myself and my personal company at the time.”
