The era parodized in this video series utilized what's known as "kayfabe," or the projection that what occurs in the wrestling ring is legitimate competition and that nothing is predetermined. This makes some of the more outrageous moments all the more amusing since such tactics were often presented to the audience, yet were still supposed to convey believability.
This series' primary intention (from a business standpoint) is as a promotional advertisement for WWE sponsor KFC.
Andrew Hawkinson (AKA Luke Gallows, AKA 'Doc' Gallows, AKA 'Festus') originated the Tex Ferguson character as 'Sex' Ferguson in a series of short videos prior to 'Southpaw Regional Wrestling.'
At the time this series takes place (February, 1987), the WWE (known then as the WWF) was preparing for their largest show to date, WrestleMania III.
The jacket that Tex has on is for Ribera Steakhouse. It is a professional wrestling, boxing and mixed martial arts-themed steak house restaurant in Japan. Many pro wrestlers will go there as a right of passage and many get those jackets as a gift fron the restaurant. For many North American wrestlers its a way of saying "I wrestled in Japan".