Saints are under investigation by an independent disciplinary commission after the EFL charged them with two breaches of regulations.
Saints are alleged to have spied on a Middlesbrough training session at Rockliffe Park two days before the first leg of their Championship play-off semi-final.
Tonda Eckert’s side went on to beat Boro 2-1 after extra time in the second leg to set up a play-off final against Hull City at Wembley.
Boro have since released a statement demanding that Saints be prevented from playing in the final, currently scheduled to take place on Saturday, May 23.
Phillips, who made 73 appearances for Saints, disagrees with that notion and instead feels a hefty fine and potential points deduction would be a fair punishment.
“I was covering the Boro vs Saints [first-leg], and it broke the day before, but I couldn’t believe we were talking about it in this day and age”, Phillips told BestBettingSites.co.uk.
Shea Charles celebrates scoring the winning goal that sent Saints to the play-off final. (Image: Stuart Martin)
“After what happened with Bielsa at Leeds, the sanctions that were put in place, the fine, with the integrity of our game, I didn’t believe it when I first heard it.
“They need to make a decision quickly, very, very quickly, because of Hull as well and both clubs. My punishment wouldn’t be kicking them out of the play-offs.
“It was over two legs, when I watched that first half [of the first leg], Middlesbrough could have been out of sight if they had taken their chances.
“So they clearly didn’t learn an awful lot. But if it had been a one-game, it might have had a different conversation.
“But because it was over two legs, I wouldn’t kick them out of competition, but I would seriously consider a points deduction at the start of next season or a huge fine.”