Is the English Tax Real?
The “English tax” is a term often thrown around during transfer windows to explain why English players cost more than equally talented players from other countries. In recent years, that narrative has been supported by major transfers like superstar Jude Bellingham’s $110 million move from Borussia Dortmund to Real Madrid, potentially rising to $133 million with add-ons. While Bellingham is clearly a generational talent, the sheer size of the fee — despite him never playing in the Premier League — raised eyebrows, especially compared to other elite midfielders with similar output. It suggests that even when English talent leaves young and proves itself abroad, the homegrown label carries financial weight.
Another glaring example is Jack Grealish’s $125 million move from Aston Villa to Manchester City in 2021. At the time, Grealish had never played in the Champions League and had only one strong Premier League season behind him, yet he became the most expensive English player in history. Similarly, Manchester United paid a world-record fee for a defender when they signed Harry Maguire from Leicester City for $100 million. Both deals caused widespread debate, especially when contrasted with the $77 million Real Madrid paid for Aurélien Tchouaméni or the $54 million Barcelona spent on Frenkie de Jong.
The English tax is driven by a confluence of regulatory, market, and cultural factors. Premier League rules require each club to register a minimum number of homegrown players, which creates artificial scarcity. With every top-flight club flush with broadcast revenue, there’s both the incentive and the ability to spend big to meet these squad requirements. When two wealthy English clubs compete for a limited pool of domestic talent, selling clubs know they can ask for inflated fees and still get them.
Commercial value also plays a role. English internationals boost shirt sales, attract local media coverage, and connect with the fanbase more directly than lesser-known foreign imports. An example being that Declan Rice’s $130 million move to Arsenal in 2023 was not just about his ability to shield the backline or progress the ball — it was also about adding a proven Premier League captain and England starter to the spine of the team. While Rice has justified much of that fee through consistency and leadership, the price tag reflected his status as a domestic star more than any statistical supremacy. However, players like Mason Mount, $70 million to Manchester United, and Ben White, $65 million to Arsenal, were also bought at premiums that far exceeded their European market equivalents.
It’s worth noting that not every big fee for an English player is unjustified. Players like Bellingham, Rice, and even Bukayo Saka, if he were sold, carry both immense on-field impact and marketing value. Yet the pattern remains: for similar age, position, and talent level, an English player typically commands 25 to 50 percent more than a foreign one. This is evident when comparing fees for players like Jadon Sancho, $95 million from Dortmund to United, with others like Leroy Sané, $55 million from City to Bayern, or Kalvin Phillips, $55 million to City, compared to a talent like Eduardo Camavinga, $40 million to Real Madrid. Many players go into a status of a hidden gem due to their nationality.
So is the English tax real? Absolutely. It exists as a product of structural regulations, financial might, and emotional investment in homegrown stars. However, that doesn’t make it irrational. For Premier League clubs, paying a premium for an English player often checks multiple boxes — from eligibility to marketability to fan connection — making the extra dollars part of a broader strategy rather than reckless spending.
