Yes it's Dundee's Desperate Dan carrying an album by U.S.A.'s Steely Dan.
It could be interpreted as Dan stealing the LP, giving it a visual pun (stealy Dan), especially as it may also be a rogue Dan (bolts in the neck?!).
Anyway, it's quite amusing, and I remember buying Pretzel Logic too.
If I incorporate a 3rd Dan onto the scene, Dundee's Danny Wilson, some of you will know that they were somewhat inspired by Steely Dan's music.
In fact, they even released an EP in the late 80's which gave a bit of a nod to Pretzel Logic - cheekily calling it Strepzil Logic!
I remember at the time seeing an enlarged and coloured (or colourised) version of this advert on display in the window of a record shop somewhere in London's West End. If I recall correctly, Desperate Dan's shirt was blue.
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