I'm not running any English, Italian or Spanish teams. All my background teams are from the old Eastern Bloc. I think apart from Rapid Bucharest, I was the only team from that region to make it past the group stages of the Euro cup. On my way to the final, I played Italian, Spanish and English teams and then Celtic in the final. Of all the teams I've played (in this version and previous versions of the game) lesser English have always been the most difficult.
In the semi-fianl I played West Ham. Despite the fact the Hammers had the same squad as they did when the game started (a team which you'll remember struggled in the previous
Prem. season) , my hugely talented squad (which cost millions) still struggled, having beaten Villareal and Udinese with relative ease. Futhermore, in the final of the Champs. League, Everton played Real Madrid in the final and thumped them, again with a largely unchanged squad.
Even if it is the case that teams from my background leagues will tend to do better, it is not a reason for the disparity between lesser English clubs vs. clubs from Spain or Italy. Like someone pointed out, it's not a huge problem but is something that I feel needs to be re-addressed.