The Hornets have seen the likes of Jadon Sancho go to Manchester City and Harry Amass depart for Manchester United since the Elite Player Performance Plan (EPPP) academy system was introduced in 2011.
The system allows for the free movement of young players between various categories of academies for fixed fees, though The Watford Observer has been told by club sources that they have managed to negotiate a guaranteed income of £285k for James, more than the mandated payment, with several clubs having shown an interest.
The system has been a source of frustration for clubs like Watford with Category 2 academies, who have no control over losing talented players to the richest clubs in the country for a relative pittance.
The Hornets took the decision this summer to downgrade to a Category 3 academy and disband their Under-21 side, believing the system doesn't allow them the opportunity to develop enough genuine first-team candidates.
James is said to have been hugely impressive from the Under-12s through to the Under-14s at London Colney, and will now enter the Tottenham Under-15s from next season.
While he may well be a name we hear more of in future, he is the latest example Watford can use to justify such action.
Sancho established himself in the City academy having left WD18 aged 15, moving to Borussia Dortmund and then Manchester United, while making 23 England caps.
Amass has also featured at first-team level for United and would now likely be worth several million in the transfer market having impressed on loan at Sheffield Wednesday in the first half of last season.