Should the Premier League's top clubs focus on buying English players? In a simplified world the answer would be: ‘Yes'.

Unfortunately, we live in the real world and when it comes to managing a football club, the nationality of a player should never matter more than his ability to contribute on the pitch. Equally, nationality should never muddy the decision making process.

Before I go any further, let me just point that I am not specifically reacting to the impending arrivals of Jordan Henderson and Phil Jones at Liverpool (reportedly for £20m) and Manchester United (reportedly for £16m) respectively. My argument is simple: English players in the Premier League are way too overpriced.

It just doesn't make any sense for a business - and football clubs are operated as such - to pay over the odds for a product (player) from one place when they can go and get an equal if not better version elsewhere. We live in financially tough times at the moment and those running the clubs we love must do so with care.

Worryingly, international accounting and consulting firm Deloitte recently released a study which showed how the Premier League's wage increases continue to outstrip growth in revenues.

The Deloitte report concludes that Premier League salaries rose by £64million (5%) to over £1.4billion in 2009-10 against an overall revenue increase of just 2%. In a nutshell, this means that for every £100 that gets pumped into the club, a massive £68 goes directly to players. That doesn't leave much for the club to spend on other important functions like improving facilities and investing for the future.

Not surprisingly it is the bigger clubs that top the wage charts. Chelsea lead the way with an annual wage bill of £174million followed by Manchester City (£133m) and Manchester United (£132m). Now more than ever is the time when Premier League clubs need to be prudent with their budgets.

Should clubs buy English? Not if their ability doesn't match the price tag.

Typically we see English players' value being marked up. At the start of the 2010/11 season, West Ham United slapped a £20 million price tag on striker Carlton Cole after Liverpool showed some initial interest in the player.

Arsenal manager Arsene Wenger is one who has often been accused of not buying enough English players during his 15 year reign (if I am not mistaken he has signed around 10 in that time) but we have to remember that the Frenchman has been burned by overpriced and hyped English players before.

Remember the £8million fox-in-the-box signing that was Francis Jeffers in 2001? As a result, he has decided to steer clear of the perils of buying English, focusing instead on bringing quality English players through the academy ranks. I like what he's doing here. English players are always going to be important for Premier League clubs - the English will of course want to see their compatriots play for their clubs.

So, the question is not should these clubs buy English but why are they so much more expensive?

Perhaps it's a question of supply and demand? The domestic demand for quality English players is certainly high although the same cannot be said outside of England. English representation in the top leagues of European football is practically non-existent which tells me that Premier League clubs have priced their English players out of the market.

To make matters worse, this trend doesn't appear to be going away anytime soon because the supply line of top English players appears to be diminishing. A report from the BBC said that the biggest headache the English FA face today is the most fundamental of all: actually getting people to play football.

The BBC, referencing a report from Sport England, said that the numbers participating in football is declining - falling from 2,144,700 in 2007 to 2,090,000 by last year. Fewer players mean less chance of unearthing the next Wayne Rooney. It also means higher prices for the ones that show some potential.

Unfortunately, potential does not always turn into ability which can equate to millions of dollars lost on a return on investment. This Premier League race to sign hottest English talent around reminds me a little of the arms race between the USA and the former USSR during the Cold War. A senseless waste of money.