The Sharks this week told the experienced trio that their contracts would not be renewed for the 2022 season.
Graham spoke on Fox League’s Friday Night Footy and said he felt for the trio but backed the club's decision to look to the future.
“It’s a tough one. It’s always a hard situation when those sorts of decisions are made,” Graham said.
“I think the reality is we did have a lot of guys off contract and we would never be able to keep everyone. But with those guys, certainly the way I look at it, is bad news is better than no news.
“Once the club made a decision, they were upfront, they let the players know and now their focus can be on the final part of the season and hopefully secure their future somewhere else while playing some good footy for the Sharks.”
“I like that those guys have been given such clarity at this point in the season and the opportunity to secure their services somewhere else,” he said.
“I think for me, Aaron Woods has struggled since the introduction of the rule changes.
“Shaun Johnson was always an interesting signing at the time, I think his attacking prowess has brought so much spark but I just didn’t see him as that Cronulla type player.
“I think Shane Flanagan originally signed him from the Warriors knowing what attack he brought to the club but I also think he also wanted to see Shaun to fit into that Cronulla way. I don’t think he’s done that.
“And Josh Dugan just hasn’t played enough footy and played at the level that I think he was signed at.
“Obviously a tough call but I think those players will certainly pick up a deals somewhere else but it’s a great opportunity with the amount of money that’s freed up for the Cronulla Sharks to really build a strong roster moving forward.”
The decision to let three high-profile players go at season's end comes after the Sharks secured Nicho Hynes from the Melbourne Storm on a deal that will see him at the Shire for the next three years.