To give an on-topic (but useless, as he's banned) reply:
Almost all LLM clubs in FM07 are struggling with their finances at this level. So I would say that unless you improve income for the clubs in some way, it is impossible to have players go asking more money while there is no more money from the clubs to give to the players. It's a simple matter of offer and demand.
As said before by others, putting further geographical restrictions on some players would be more realistic, but to make a game playable in LLM, people would be forced to play with a super-mega-it-makes-my-computer-crash-HUUUUGE database that covers every unsigned player in the whole world. Obviously, this is impossible to do because of both research and computer restrictions.
So I'd say: more realism is nice, but it shouldn't come at cost of a balanced game.