A Balloon Named 'Inflation'

Over the past few years, there has been an increase in the number of cash rich clubs who can spend ridiculous amounts of money to get their desired player.
When they want a player, they just look to offer the high asking price to lure him.
The general principle behind an auction is to get maximum (sometimes even a whole lot more than necessary) price for the commodity, which in this case are the players.
It is fair to say that this is how it works, but what it actually does is that it inflates the player prices.
Let’s talk about Raheem Sterling. The England international cost Manchester City £49 Million as reports suggest. The main concern about the transfer is that whether the fee is justifiable or not? That fee includes his ‘market worth, royalty to the club, pay out to QPR (his old club) and “The English Premium”.
This ‘English Premium’ is the main perpetrator here. Since there are not many young English players that can be considered ‘Top Class’, whenever a kid with a potential pops up, top clubs want to sign him up (just to fulfill their home grown quota) and end up paying over the odds for the said player.
Without a shadow of a doubt, this “English Premium” is playing a huge part in ruining the way these transfers work. It is inflating the player prices to an extent where it is impossible to justify them.
I know that clubs are allowed to value the players according to their importance to the said club, but to demand ludicrous amounts of money for “potential” is something that shouldn’t happen.
FIFA talks about imposing Financial Fair Play and regulating the net spend of clubs so perhaps a look into regulating the player prices won’t be too bad.