Joeys contract through 2016...
2013 29 Cincinnati Reds $17,000,000
2014 30 Cincinnati Reds $12,000,000
2015 31 Cincinnati Reds $14,000,000
2016 32 Cincinnati Reds $20,000,000
2017 33 Cincinnati Reds $22,000,000
Joey doesn't reach $25 million 2018.
The Reds five year extension offer would be 2013-2017 season for Phillips. That is why Joey's contract is back loaded, so the Reds could also sign Phillips.
Phillips will be 32 in the first year of his extension, and run through his age 36 season. Leaving him to be a free agent in the season he turns 37.
I think the 5 year deal is a smart move for the Reds, and I would not go beyond the 5 years guaranteed. I would include an option for a 6th year if it got the deal done.
Joey accepted a back loaded deal, Phillips should be a team player and take the 5 year extension at 12 million per season. It's a fair deal.