Tbf I think everyone understands that Phil is a unique case.
The star of the academy. The chance to go down as the club's most decorated and potentially best ever player.
Plus if as many have suggested its been about long term health issues I'd imagine most of his squad mates have a lot of sympathy for him.
I'd actually think discarding him would be a much worse look for the current players and the academy guys.
Phil at top, POTY, form is still possibly the best player in the squad. Even at the new wages it's maybe a safer bet than buying a new guy, for 100m+ and then giving them those wages.