
The Hammers are said to be keen on a move for the former Liverpool midfielder who enjoyed a successful season-long loan stay at Pride Park last term from RB Salzburg.
Head coach John Eustace is keen for Clark to sign permanently after he excelled last season and secured the club's young player of the season award following his performances.
But with the Hammers having been relegated and boosted by parachute payments, they pose a serious threat to Derby over any deal.
However, former Derby coach Phillips believes that securing extra funding into the clubs amid ongoing links to billionaire Turki Alalshikh is effectively the best way to compete.
"Listen, I think money talks, doesn’t it? If this new investor comes in and they’ve got money to pump into the football club, it’s going to take decent wages, serious wages and a transfer fee," Phillips told BestBettingSites.
"Can Derby compete with the West Hams, the Burnleys, financially? Well, if this new investor comes in, yes, they can. And that’s really the only way.
"Then it’s down to the player. Did he enjoy his time enough to say, I want to stay? Or does he see potentially going to West Ham as a big club?
"So ultimately, it’s about the finances and, of course, what the player’s thinking. We don’t know that, but if they could offer him a decent contract, then I think he would certainly look there. Derby’s a big club, great infrastructure, and they had a great season."
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