The summer transfer window resulted in a record £835m spend by English clubs, but £530m of that money went to foreign clubs.
Quite often last season Alan Pardew fielded a Newcastle team without a single British-born player, and the England boss says "it is killing the English game".
Roy Hodgson: "The major problem is the pathway.
"Our academies are doing some good work. There are some good players going through those academies, and the bulk of those are English.
"My fear is we've seen players come through in the past and they're very good at breaking into the under-21s, and getting a sniff at the first team, but then a vacancy in the first team comes along, through a player being sold or injured, they've been given a chance.
"But now, with the money the clubs have at their disposal, they are always going to be tempted to not take the chance they would have done in the past if a player was out for a month or two when they had 'a kid called Wayne Rooney or David Beckham, he looks pretty useful, let's stick him in'.
"I fear they'll say, 'Let's keep him back a bit longer and buy a top-class foreign player'."