Born in Glasgow, where he attended Hyndland Secondary School, Thompson qualified as an accountant prior to working in managerial positions for Dundee-based Watson & Philip, owners of the VG chain of convenience stores. In 1991, he left them to become founder and chief executive of a similar chain called Morning, Noon & Night. He continued to run the company until selling it to Scotmid in 2004 for £30m.

Thompson was initially a Motherwell fan, but changed his allegiances and became a supporter of Dundee United when he moved to the Dundee area. He had a lengthy association with the club, and instigated their first ever shirt sponsorship deal, with VG, in the 1980s. He was appointed the club’s honorary business consultant but subsequently became estranged from the club’s management after falling out with manager and chairman Jim McLean. Thompson spent many years trying to invest in the club, being constantly rebuffed until finally assuming control of Dundee United in September 2002 when he bought McLean’s shareholding.

After gaining control he invested large sums of money in the team, but initially with limited success. Thompson gained a reputation as a ruthless chairman, sacking five managers in little more than his first four years in charge. He continued to take charge of club affairs personally, despite having been diagnosed with prostate cancer in 2003. Thompson also served as a member of the Scottish Premier League management board.

He was awarded the OBE in June 2005, in recognition of his services to the Scottish grocery industry and his work as chairman of the Scottish Retail Consortium. As well as the SRC, he has also served on the board of the CBI Council for Scotland, the British Retail Consortium and the Scottish Grocers’ Federation. He has also been a recipient of the Scottish Grocery Lifetime Achievement Award.

The club’s fortunes began to improve following the appointment of Craig Levein, who would become a personal friend of Thompson, as manager in October 2006. During the 2007–08 season, Dundee United reached the Scottish League Cup Final, by which time it had become public knowledge that the chairman was terminally ill. Many supporters wore T-shirts bearing a “One Eddie Thompson” slogan during the final against Rangers to pay tribute to his efforts on behalf of the club. Also during March 2008, it was announced that the East Stand at United’s Tannadice Park stadium was to be renamed after Thompson, following suggestions by supporters.

Thompson died of prostate cancer on 15 October 2008. His death was announced by Dundee United in a statement: “It is with great sadness that Dundee United announce the death of chairman Eddie Thompson, who died today after a long illness borne with great fortitude, much bravery and a dogged determination to carry out his responsibilities at Tannadice for as long as possible.”

He is survived by his widow, daughter, son, and four grandchildren. His son-in-law was killed in a road accident on 12 October 2008. His role as Chairman of Dundee United Football Club was taken over by his son Stephen.