A homegrown player is defined by their affiliation with an English or Welsh club for 36 months before their 21st birthday, regardless of nationality. This differs from UEFA rules, which only count time between ages 15 and 21. For example, Chelsea's Joao Pedro is homegrown because he joined Watford at age 18.

Nationality and birthplace do not determine status; it is about football education. Eric Dier was considered an overseas player because he spent less than the required three years at English clubs before turning 21. Conversely, Noni Madueke is homegrown due to his time at Crystal Palace and Tottenham, despite playing for PSV Eindhoven.

Regarding transfers, sell-on fees are typically calculated based on the profit of a subsequent sale. If Team B sells a player for a profit, a percentage of that gain is owed to Team A. These fees are usually paid in installments aligned with the main transfer agreement, meaning Team A receives funds only once Team B has been paid.