This loudly dressed individual is the Honky Tonk Man, run by JAG, and one of the most colorful and hated heels of all time.
He pretty much affected the Elvis impersonator thing 24-7, and he carried in his guitar and Elvis suit to the ring every time. The guitar often ended up as a weapon in his fights (when the ref's back was turned of course).
He held the Intercontinental Title belt for over a year, which is a record which still stands today. He kept it through numerous fights by getting himself disqualified instead of losing to better opponents.