So here's what's happening with Phillips:
He wants a contract longer than one year, which is entirely reasonable given that he's 35 years old. Something in the neighbourhood of three years shouldn't be out of the question.
Ottawa doesn't really want to resign him, because he's not exactly improving with age, although he is still quite useful as a bottom pairing d-man. The easiest and most PR-friendly way to get rid of him is to play contract hardball (sound familiar, Alfie?) and then try to pin the lack of new contract on the player's unwillingness to negotiate. Then when you trade him, you just say you couldn't risk losing him for nothing in free agency.
So yeah, see ya later Philly.