Billy
Since I know you're in Chicago, I'm going to say the source is Mike North on WSCR (670 on your a.m. dial), whose morning sports talk show is very popular in Chi-Town. Every day he gives out a "jagbag of the day". I never heard the term before listening to his show.
BTW - this is the same Mike North who got in trouble for referring to (Japanese) pitcher Hideo Nomo as a "fireballin' chinaman", and for asking why the local CBS anchor (whose name I forget, but who is of Cuban descent) does not wear a sombrero while doing the news, so the audience knows he's hispanic. If you have not guessed, I think Mike North is kind of a jagbag.