I have managed in FM 11 maybe a more reputated team,when i could sign players from better championships,but I haven't done nothing important in European competiton with that club...Steaua has terrible seasons,but they still sign top players.Romanian league has 3 star reputation,but sadly clubs don't perform well in the european competitions.In UCL I have defeteated big teams like Manchester United,Bayern Munchen PSG or Napoli,so I haven't the worst team in the world,but I hate that i can't sign better players like Mbaye Niang,Medunjanin or Rene Mihelic.Of course it could be a bug, but it is more likely that it just takes a long time to improve a clubs reputation. It also depends on the reputation of the league you are playing in. The romanian league is not very well reputated, so only the clubs with a long european history (like Steaua Bucaresti) will attract those players. If you keep doing well in Europe, you will change your clubs rep. I'm afraid winning romanian league and cups doesn't help that much... :'(
My only advice is to keep winning, I guess...
I am managing a club in Romanian first league.I have won the championship and the cup 2 years in row,but my reputation hasn't improved.I have reached Champions League final in the second season,but players from countries like France,England,Denmark ,Norway,Spain or Portugal don't want to join my club even if they aren't at first league clubs or important players at that club.This problem is really annoying because bigger clubs from my country,which haven't their best seasons can sign players from these countries.Somebody told me that probably is one of the game's bugs.The biggest problem is that I have very much south american and african players in my team and i can't play all of them in the same time because I must have at least 5 EU players in my team...