This came from a A Winter Veil Gift under the Winter Veil tree in 2012. It looks like a little American football. If you target a friendly player and right-click the item, your character will throw it to them and they will throw it back. The present it comes from can also contain a Foot Ball instead, or in addition to, your pigskin. If you get both (either across multiple characters or on the same one), you earn the achievement They're Both Footballs?