In Warlords of Draenor, this item will be added to the new Toy Box feature and no longer take up a bag slot. You will be able to "use" the item straight from the Toy Box interface.
The Toy Box will be account-wide and therefore so will this item.
It was pulled from the Toy Box in a later build of the WoD beta. It looks like Blizzard is actually going to add it to the collection for Legion. See Cursed Swabby Helmet.
Cursed Swabby Helmet is looted from a locked Sunken Treasure in a sunken ship with elite hostile hozen. You will need to kill these mobs until you loot Barnacle Encrusted Key.
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