Italy and especially Spain have a pull England never had and still doesn't. Aside from the money, cultural affinities, lifestyle and way of playing football are arguments against which England hasn't found any meaningful counter yet.
Yep. And it's not just the south American players but players from the Balkans and Central Europe as well.
For Balkan players, Italy has always been preferable destination. Spain second, Germany third. England was only the option when there were just no decent opportunities in the other three big leagues, and if the English teams were the only ones willing to pay money.
The mentality is now slowly shifting as Premier League became more prestigious and global, but even today if a big Italian or Spanish team comes calling, a player from the Balkans and Central Europe would go there instead of England, if given a chance.
Bayern also has a massive pull both in Latin America and in Eastern Europe, as there is a lot of fascination with Germany in both of these parts of the world, and Bayern is seen as an epitome of a well-run, successful and organized club, with Bavaria region seen as the embodiment of all the positive stereotypes about Germany that those people have.
In my opinion when it comes to pull, I would put clubs in the following tiers:
Tier 1: Real Madrid, Barcelona
Tier 2: Juventus, Bayern
Tier 3: United, Chelsea, Arsenal, Liverpool, Inter, Milan, City, PSG.
Tier 4: Atletico Madrid, Roma, Tottenham, Dortmund, Napoli.
Tier 5: Aston Villa, Newcastle, West Ham, Sevilla, Valencia, Fiorentina, Lazio, Benfica, Porto, Ajax, Marseille, other top German clubs etc.
What I mean by pull is that everything else being the same (same salary, guaranteed position in the team/similar opportunities for playing time), on average players have club preferences along those lines. Clubs from a lower tier most likely have to either pay more or offer more opportunities to play to a player to beat a club from an upper tier to sign him, if both clubs are interested, or have to hope that the clubs from upper tier don't want the same player.
This tier list especially applies to foreign players who have no connection with any of these countries.
Also the table reflects the recent situation with Premier League rising and Serie A and La Liga falling. During Serie A's hayday, all of the three biggest Italian clubs would be in tier 1 and clubs like Parma and Fiorentina would be tier 2, above English clubs. In the 00s Inter and Milan were still tier 2. Even in prime Fergie years United was still just tier 2, bellow Barcelona and Real Madrid. For some time Valencia had bigger pull than Wenger's Arsenal.