This trade does in fact work. Jeff Green can be traded (that's why the Rockets picked up his option). The Thunder can take on Jeff Green's money with their RMLE. Also, Jalen Green's trade kicker would mean that his salary this year would jump to 29 mil. but the Clippers would still be able to take on this number.
The Rockets 2025 first is protected top-10 this year, and would turn into a 2026 first and second if it falls into the protected range this year.
The rationale for each team:
Rockets:
Though the Rockets would be able to trade for a bunch of other stars with the assets they have, trading for Kawhi makes more sense for a number of reasons. Currently this Rockets team has so many talented pieces that playing time for their young guys is starting to become an issue. Trading Jalen Green and Dillon Brooks would open up a ton of minutes for guys like Reed Sheppard, Cam Whitmore, Jae'Sean Tate, and Tari Eason to get more play time and to continue to develop. Each of these guys has a ton of potential, but their growth is being stifled by the lack of opportunity they each are getting. In giving these guys more minutes, not only are you preparing you team to be better into the future, they could also let Kawhi rest as much as he would need to so that they would not have to worry about his health as much going into the post-season.
Furthermore, considering the price relatively cheaper price of this star trade, if the Rockets did want to go in a different direction in the future, they would still retain the majority of their draft capital and young assets, plus they would be able to use Kawhi's contract to make money work.
Sure, Jalen Green could be a star, but considering how he has been currently playing, I just don't think his future fits on this Rockets team. Kawhi isn't what he once was, but he has led other teams to NBA championships and his vet experience may just be what this team needs to push them over the top.
The Clippers:
The Clippers simply have one of the worst futures in the NBA. Getting a potential stud in Jalen Green could potentially change their future prospects. This team could also enter a mini-rebuild over the course of this season in next by getting full control of this years and next year's 1st round picks back, which could encourage them to move on from guys like Harden and Norm to allow them to restructure and be better into the future.
I know they have the new arena this year, but this team is not winning a championship as currently constructed. Why not restructure and bring in some youth so that Clips can compete in the future while they still have the chance.
The Thunder:
The Thunder would just keep getting richer with this deal. Effectively, though they lose the rest of their MLE, the Thunder would lose the swap rights or control that they have over the 2025 pick they have from the Clippers (it's a little complicated with all the swaps), and they would also lose their swap rights on the Clippers 2026 1st. However, they would effectively be swapping the Clippers 2025 pick for the Rockets 2025 pick and they would also be getting the valuable 2027 1st from the Rockets/Nets which could be an incredibly valuable pick considering the state the Nets are in.
Going from 1 first rounder and a first round swap to two firsts just makes more sense, especially because the 2027 pick is the most valuable of the lot, also having the 2 seconds is nice.