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After just nine league appearances and no goals, the loan was cut short and he was sent to Championship club Hull City for the rest of the season.
He made 31 appearances for Brentford last season as the club secured a midtable finish.
Phillips made just two more Premier League appearances for the club over the past four seasons, spending the vast majority of the time out on loan.
But with Los Blancos desperate for their new signing to take part in the Club World Cup, Liverpool managed to extract a significant transfer fee in May for a man they expected to lose for nothing a few weeks later.
The center-back made 58 senior appearances for the Reds, including 13 in the Premier League last season as he picked up a winner's medal
But when a $41 million offer came in from Bayer Leverkusen this summer, Liverpool gladly cashed in considering the PSR boost, although the center-back ranks look thin now with Joe Gomez's injury leaving Virgil van Dijk and Ibrahima Konate as the only fit senior options as the new season nears.
Luis Diaz - $88M
The Colombia international will undergo a medical in Munich on Monday, ahead of his move to the Allianz Arena being confirmed