Penrith general manager Mick Leary has launched a tirade against accusations the NRL club has become a transit lounge after it was revealed centre Paul Franze will leave the 2003 premiers at the end of the season.

Franze, 23, has agreed to a two-year deal with English rugby union club London Irish less than a week after Leary refuted suggestions the Panthers faced more defections.

Former Australian and Ireland rugby union half Brian Smith, who also played rugby league for Balmain in the early 1990s, is the director of London Irish.

New Zealand back-rower Tony Puletua told the Sunday Telegraph the Panthers were confronting a morale issue following the exodus of 13 first graders in the past 18 months. Five will leave at the end of the season next month.

Leary voiced his outrage at the article, pointing out that Martin Lang and Ryan Girdler had retired at the end of 2004 and the club did not necessarily want to retain some players who had departed.

The Panthers off-loaded Ben Ross (Cronulla) and Joe Galuvao (South Sydney) because of salary cap pressure and hoped to retain promising youngsters Garret Crossman, Ben Pomeroy and Ben Rogers.

But the 13th-placed club was unable to match rival offers and lost all three players.

"They were offered contracts but we were blown out of the water with other clubs going over the top of us," said Leary.

"It's not a matter of not being able to keep them. It's a situation in which clubs are paying more money for them than we're prepared to pay."

Leary said he had had a "gutful" about talk of players walking out on the club.

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