In 1996, Phillips had played 15 games with 11 starts. He carried the ball 193 times for 632 yards for 4 touchdowns. In 1997, Phillips surpassed his entire 1996 total in only 10 games and nine starts, rushing for 634 yards. However, on November 20, the Rams abruptly released him. According to reports at the time, Rams team officials told the press that coach Dick Vermeil had told Phillips that he was being demoted to second string due to his inconsistent performance and inability to stay out of trouble. Phillips stormed out of the Rams' facility and missed that day's meeting and practice. The Rams lost patience with him and decided to cut ties with him. A teary-eyed Vermeil at the time called Phillips potentially the best running back he had ever coached. In the 2016 documentary "Running For His Life: the Lawrence Phillips Story", Vermeil revealed that Phillips collapsed on the field during pre-game warmup for his 10th (and final) game with the 1996 Rams. Trainers revealed that he had alcohol on his breath, and told Vermeil that they'd smelled alcohol on his breath on a number of previous occasions. He'd been known to stay in bars until 4 a.m. on the night before games. The following Monday, Vermeil called Phillips into his office and told him that he was cutting him. While Vermeil was known for having little tolerance for off-the-field misconduct, he knew Phillips was a talented player and gave him numerous chances to stay on the straight path. He did say, though, that if given the chance to do it over again, he would have kept Phillips on the roster. In that same film, Vermeil revealed that he reached out to a friend, Miami Dolphins head coach Jimmy Johnson, to give Phillips a chance with the Dolphins.